Hi @Robrad14 !
According to IRS Form W-4P, your plan is required to withhold 10% from any non-periodic payment, unless you fill out the form and request not to have taxes withheld.
To determine if that 10% will be sufficient to cover your tax balance due at the end of the year, visit our TaxCaster and enter all your sources of income and other withholding or tax payments. If you deem it necessary to ask the plan to withhold more taxes, you may submit a Form W-4P before they process the lump sum payment and enter an additional amount to be withheld on Line 3 (Line 2 is not applicable to non-periodic payments). Be sure to fill out another form after that if you want your withholding to go back to normal.
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