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Retirement tax questions
Other than backup withholding as mentioned by tagteam, credit for taxes withheld from a distribution paid to the trust is not permitted to be passed through to trust beneficiaries on Schedules K-1. Excess tax withholding must be refunded to the trust. Because of this, the beneficiaries might have underpaid taxes during the year.
‎February 21, 2024
8:00 AM
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