Yes, it is different.
State withholding would be income tax payments withheld from your
retirement income and paid to your state.
State withholding is reported in Box 12 of your Form 1099-R. Please see the screenshot below.
State taxes being withheld from retirement income is not as
common as Federal withholding. So, if
you don’t have it, don’t be alarmed. Many
states have at least a partial exemption for retirement income.
If you need to have state taxes withheld, contact your plan
administrator.
