Common use of TAX WITHHOLDING ELECTION Clause in Contracts

TAX WITHHOLDING ELECTION. (Note: Tax withholding does not apply to distributions from an Education Savings Account, Xxxx qualified distributions, or to direct rollovers from an IRA to an eligible employer-sponsored plan.) Notice: Generally the distributions you receive from your IRA are subject to Federal income tax withholding unless you elect not to have Federal income tax withheld. You may elect not to have Federal income tax withheld on your IRA distribution by returning a signed and dated substitute Form W-4P (contained in Step 4 of this distribution request form) to Pershing LLC or financial institution with the appropriate box checked. Unless a previous withholding election is in place, you elect not to have Federal income tax withheld, or if you elect an alternative withholding amount, 10% will be withheld from your nonperiodic IRA distribution. Your election is valid (on this distribution and all future distributions from this IRA) until you change or revoke it. You may change your withholding election by completing another substitute Form W-4P included in this distribution form. If you elect not to have Federal income tax withheld on your IRA distribution, or if you do not have enough Federal income tax withheld from your IRA distribution, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You are responsible for determining and paying all Federal, and if applicable, state and local taxes on distributions from all IRAs you own. If you are a U.S. citizen or resident alien receiving an IRA distribution that is delivered outside the United States or its possessions, withholding is required. That is, you may not waive withholding. Nonresident aliens and foreign estates are generally subject to 30% federal tax withholding on nonperiodic IRA distributions if there is not a tax treaty exemption. If you are a nonresident alien you may not use Form W-4P to withhold income tax or to waive withholding. Instead, if you are a nonresident alien you must provide Pershing LLC with Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individual), to establish foreign status and to claim a treaty rate (when applicable). A foreign person should refer to IRS Publication 515 and to Form W-8BEN for further information. We may be required to withhold state income tax from your IRA distribution depending on your residency. Withholding rates are subject to change without notice. If no election is made, applicable state income tax may be withheld unless you indicate otherwise. For states with voluntary withholding, no withholding will apply if a percentage or dollar amount is not specified. You may waive state income tax withholding to the extent permitted by law. In some cases, you may elect not to have state income tax withheld. Note: Taxes withheld from your IRA distribution in accordance with your instructions will not be reversed. Your withholding election will remain effective until modified or revoked. Once a distribution has been processed in accordance with your instructions, you may not retroactively change your withholding election. Contact your advisor for a copy of Xxxxxxxx’x XXX Federal and State Income Tax Withholding Instructions. For additional information regarding Federal and state tax withholding, contact your tax professional.

TAX WITHHOLDING ELECTION. (Note: Tax withholding does not apply to distributions from an Education Savings Account, Xxxx qualified distributions, or to direct rollovers from an IRA XXX to an eligible employer-sponsored plan.) (Form W-4P/OMB No. 1545-0074) Dept. of Treasury, Internal Revenue Service) Notice: Generally the distributions you receive from your IRA XXX are subject to Federal income tax withholding unless you elect not to have Federal income tax withheld. You may elect not to have Federal income tax withheld on your IRA XXX distribution by returning a signed and dated substitute Form W-4P (contained in Step 4 of this distribution request form) to Pershing LLC or financial institution with the appropriate box checked. Unless a previous withholding election is in place, you elect not to have Federal income tax withheld, or if you elect an alternative withholding amount, 10% will be withheld from your nonperiodic IRA XXX distribution. Your election is valid (on this distribution and all future distributions from this IRAXXX) until you change or revoke it. You may change your withholding election by completing another substitute Form W-4P included in this distribution form. If you elect not to have Federal income tax withheld on your IRA XXX distribution, or if you do not have enough Federal income tax withheld from your IRA XXX distribution, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You are responsible for determining and paying all Federal, and if applicable, state and local taxes on distributions from all IRAs you own. If you are a U.S. citizen or resident alien receiving an IRA XXX distribution that is delivered outside the United States or its possessions, withholding is required. That is, you may not waive withholding. Nonresident aliens and foreign estates are generally subject to 30% federal tax withholding on nonperiodic IRA XXX distributions if there is not a tax treaty exemption. If you are a nonresident alien you may not use Form W-4P to withhold income tax or to waive withholding. Instead, if you are a nonresident alien you must provide Pershing LLC with Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individual), to establish foreign status and to claim a treaty rate (when applicable). A foreign person should refer to IRS Publication 515 and to Form W-8BEN for further information. We may be required to withhold state income tax from your IRA XXX distribution depending on your residency. Withholding rates are subject to change without notice. If no election is made, applicable state income tax may be withheld unless you indicate otherwise. For states with voluntary withholding, no withholding will apply if a percentage or dollar amount is not specified. You may waive state income tax withholding to the extent permitted by law. In some cases, you may elect not to have state income tax withheld. Note: Taxes withheld from your IRA XXX distribution in accordance with your instructions will not be reversed. Your withholding election will remain effective until modified or revoked. Once a distribution has been processed in accordance with your instructions, you may not retroactively change your withholding election. Contact your advisor for a copy of Xxxxxxxx’x XXX Federal and State Income Tax Withholding Instructions. For additional information regarding Federal and state tax withholding, contact your tax professional. Statement of Federal Income Tax Withheld From Your XXX — By January 31 of next year, Pershing LLC will provide to you Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., showing the total amount of your XXX distributions and the total Federal income tax withheld during the year. If you are a foreign person who provided your XXX Custodian with Form W-8BEN, Pershing LLC will provide to you Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, by March 15 of next year.