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Retirement tax questions
If the proceeds were paid out directly to your wife, then the retirement account custodian is required to withhold 20% for federal tax. In order to avoid it being taxable, you wife would have had to include $189 from personal funds, along with the amount she rolled over within 60 days of receiving the distribution. In this case, the $189 is taxable income.
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‎February 27, 2022
4:47 PM