3619. Are amounts received from IRAs subject to withholding?Nuco Employeercline202014-06-04T14:10:00Z2014-06-04T14:10:00Z12021152Albany Law School92135214Site Map/Individual Retirement Plans/Roth IRA/Distributions/TaxationSite Map/Individual Retirement Plans/Traditional IRA/Distributions/Taxationindividual retirement account annuity2005-01-19T00:00:00ZTaxFactsDefaultArticle114830230-00-tf1.xml231.00;#1816;#1825;#0x010100C568DB52D9D0A14D9B2FDCC96666E9F2007948130EC3DB064584E219954237AF3900242457EFB8B24247815D688C526CD44D009C4E67E972694125ABDA91AC61F5E51FTax Facts 1Are amounts received from IRAs subject to withholding?87400.0000000000TaxFactsDefaultArticle2010-01-15T00:00:27ZSBMEDIA\moss-admin3619. Are amounts received from IRAs subject to withholding?Yes.Taxable distributions from traditional IRAs are subject to income tax withholding. If the distribution is in the form of an annuity or similar payments, amounts are withheld as though each distribution were a payment of wages pursuant to the recipient’s Form W-4. In the case of any other kind of distribution, a flat 10 percent is withheld.IRC Sec. 3405(e)(1)(A); Treas. Reg. §35.3405-1. Even though distributions from a traditional IRA may be partly nontaxable because of nondeductible contributions, the payor must report all withdrawn amounts to the IRS.IRC Sec. 3405(e)(1)(B). A recipient generally can elect not to have the tax withheld; this election will continue until the recipient revokes the election.IRC Secs. 3405(a)(2), 3405(b)(2).Planning Point: A recipient of a taxable IRA distribution should project his or her income tax liability for the year and pay in an appropriate amount of estimated tax payments to avoid penalties for under-withholding. Withholding of 10 percent or even 20 percent may be insufficient to cover federal income tax liability. Taxpayers should project their state and local tax liabilities as well. Martin Silfen, J.D., Brown Brothers, Harriman Trust Co., LLC.Distributions from Roth IRAs are subject to income tax withholding, but only to the extent that it is reasonable to believe the amount withdrawn would be includable in income.IRC Sec. 3405(e)(1)(B).