When you receive payments from your IRA, those funds are typically subject to federal income tax. By default, tax is withheld from these distributions unless you specifically elect otherwise.
What You Need to Know
- You are in control: You may elect to have no tax withheld and can update this election at any time prior to a distribution.
- Making changes: To update your election, simply complete IRS form 2317, which is available directly from the IRS and at any of our branch locations.
- Tax obligations: While withholding can help you manage your estimated tax payments throughout the year, the election you make does not change the actual amount of tax you owe to the IRS.
- Avoid penalties: Please keep in mind that if your total withholding and estimated tax payments are insufficient, you may incur IRS penalties under the estimated tax rules.
If you have questions about your IRA withholding, please call or text us at 336-662-6200.