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IRA distribution withholding – Friendly Reminder

Processing Individual Retirement Arrangement Distribution Withholding

Some states prove to be difficult than others

Due to difficulty with some states and how they process IRA distribution withholding (DW), we have had to change our procedure.  We will still give you the opportunity for funds to be withheld by your state when taking IRA distributions, but instead of sending the check to the state, we are now going to send it directly to the client.

“There’s a special rule for the year you turn age 70½: You have until April 1 of the following year to make the first required withdrawal from your traditional IRAs, 401(k)s, 403(b)s and other retirement plans…” Says Kimberly Lankford in a recent article titled, Don’t Miss the IRA Required Distribution Deadline. Posted in

What is your State’s procedure?

Each state has a different procedure for how they accept and process IRA (DW) checks.  Sunwest Trust will cut a check, made payable to your state, according to your withholding instructions.  We will then send the check to you and you will be responsible for sending it to the appropriate department.

Sunwest assists if you need state withholding

Rather than not allowing clients monies to be withheld by the state, we have decided that this is in the best interest of both our company and our clients.

If you have more questions on this issue or on IRAs, please contact a CPA or tax professional.

Terry White

About Terry White

I started my business career after getting my degree in Accounting from the University of New Mexico in 1983. My first job was as a controller for a local title company, and in 1987 I started First Financial Escrow, Inc. Over the years I played a part in several startup companies including First Financial Equities, Inc., First Financial Trust, Inc., First Financial Marketing, Inc. and Asset Ventures, Inc. In 1997 First Financial Escrow, Inc. was able to purchase the escrow accounts from Sunwest Bank and changed its name to Sunwest Escrow. As the market changes, Sunwest has grown and changed along with it. Besides my wife, Sheila, we have three boys, two daughters-in-law, one grandson, another grandson on the way and a future daughter-in-law. Sunwest is my passion, and I enjoy coming to work every day to see what will happen next. I enjoy fly fishing, spending time in Colorado, biking and watching my boys play soccer.