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Tech Talk - Question 8

Q. Our client is over age 59½, and has held his Roth 403(b) account for more than five years. Are we required to withhold 20 percent for federal income tax since the distribution is eligible to be rolled over?  The rollover to a Roth IRA will be done indirectly.  
 

A. Since this is a non-taxable distribution, it is my understanding that the mandatory 20 percent withholding will not apply to it. 

06/17/2014