Lets clarify some things (again):
This is a DEATH benefit Inherited IRA from a death of a brother to my spouse (the sister).
My spouse decided to take the option Distributions over 5 years (before the tax change of Dec 2019 now is 10 years).
THe bank (Fifth Third) asked my spouse Do you want us to take taxes out? Spouse said no.
My questions are very specific:
1. What would have been the tax rate or percent that the bank fifth third BANK would have taken out? is this a standard rate across all FINANCIAL institutes?
THIS IS NOT A PENALTY (10%)
Our 1099 R shows box 2b checked - taxable amount not determined and box 4 0.00 OBVIOUSLY we will apply this income to our 1040 and will be adjusted per our tax bracket.
I DONT SEE ANY ADVANTAGE of the bank taking out taxes since this is treated as income!! at the federal level
