drc845443
Employee Tax Expert

Retirement tax questions

It is likely that you will need to pay taxes on the distribution, depending on the amount and your filing status.

You can either:

  • request your broker to withhold taxes from the distribution and pay the amounts over to the IRS and state, or 
  • you can just make the quarterly payments to the IRS (use Form 1040-ES) and the state 

It is much easier for the broker to withhold a  percentage of the distribution.

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