Quote:
Originally Posted by iaudit
I believe the 20% withholding only applies to the 401k, not IRA distributions.
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Yes you are correct.
http://www.research401k.com/401k-direct-rollover.html
But let's remember - it is just a withholding. Since you will probably have some tax due on the withdrawal amount it doesn't hurt to have some tax withheld. But nobody wants Uncle Same using their money
