Today I spoke with Fidelity to remind them to withhold state and federal taxes from my 401K savings plan RMD this year. (Last year they forgot to, so I had to make estimated tax payments to cover that.) Fidelity said I can no longer tell them to withhold 10% or a set dollar amount but must fill out the new W-4P per the IRS. And failing that, they will withhold the default amount (married, 3 deductions). I am single, no deductions. I next spoke with Morgan Stanley who issues my IRA RMD, and they said they were not aware of any new "law or rule" and that they plan to withhold 15% for state and 15% for federal as before. I read the IRS W-4P form instructions, and it seems to say that form is used for periodic pension payments or annuities. Are those the same as RMD's? I am thinking the W-4P is for my pension payments not my annual RMDs. Thanks.
