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Retirement tax questions
Default withholding on a traditional IRA distribution is 10%, not 20%, but the recipient can optionally request that nothing be withheld (as was done in this case) or that more than 10% be withheld for federal taxes.
Because the US tax system is a pay-as-you-go system, having taxes withheld can be helpful in avoiding a tax underpayment penalty.
March 21, 2020
5:33 PM