SELF DIRECTED IRAOpen IRA
SELF DIRECTED IRAIRA Fees
SELF DIRECTED IRAIRA FORMS
SELF DIRECTED IRA AND ESCROWAccount Access

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 www.kiplinger.com.

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.