Rollovers
| Q | An individual has been receiving the required minimum distribution (RMD) amount each year. This year, he requests $25,000 in addition to the RMD. Is the $25,000 an eligible rollover distribution subject to 20% mandatory withholding? |
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| A | RMD amounts are not eligible rollover distributions. Therefore, the 20% mandatory withholding requirement is not applicable. However, random distributions in excess of the RMD, such as the $25,000 in this case, are eligible for rollover to an IRA or an eligible retirement plan and, therefore, are subject to the 20% mandatory withholding. |
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