1099r state tax withheld doesn't match state distribution?

Forum|Forum|1 year ago
September 2, 2025
4 replies
80 views

state and federal tax rates for retirement account distributions?

Best answer by rjs

Expert Reviewed

There is no fixed or official rate for state tax withholding on a distribution from a retirement account. The amount that was withheld is whatever percentage you specified to the account trustee or custodian when you made the withdrawal. It has nothing to do with the tax rate that will apply to the distribution on your state tax return. The tax that was withheld on the 1099-R will be applied towards your total state tax obligation. It does not apply specifically to the retirement distribution.

VolvoGirl

Level 15

What?? Can you give more details? The default state withholding is usually like 10% or less. What do you mean it doesn't match the state distribution? It should not match 100% of the distribution. The withholding is just an estimated about to cover the tax due on the distribution. If they took out too much you will get it back as a refund on your tax return.

rjs

Answer

Level 15

Expert Reviewed

SteamTrain

Level 15

Maybe NY or some other state tax returns, where the 1099-R doesn't show the state distribution in box 16...and the user needs to indicate what the actual distribution was on a follow-up page?

Those folks need to make sure the state distribution amount is set to what is in box 2a (IF it's a positive, non-zero value) or the value of box 1 in many cases.

i.e. you can't have state taxes withheld if there were no $$ distributed.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

VolvoGirl

Level 15

@Weaversqhi On your 1099R, anything in box 14? If not then leave boxes 14, 15 & 16 all blank, no spaces. If you have withholding in box 14 then enter the amount from box 2a into box 16 for the state distribution. If box 2a is blank use the amount from box 1.