I have a situation where a conduit trust received a distribution from a retirement account in 2017 and the plan custodian withheld Federal and Calif tax. The withholdings are reflected on 1099r received by the trust. Let’s say the distribution is $28000 and the net received by the trust is $21000 after withholding. Is the Trustee required to distribute $28k or 21K to the beneficiary. I believe he is required to distribute 28k. I also think he can’t distribute the withholding since I don’t believe this withholding is backup withholding. What are the remedies? He should stop the withholding on future distributions; is this correct? In order to distribute the entire 28K, he will need to request an additional distribution in the subsequent year in order to make the payment. The 28k was more than the RMD in the given year. I think the trust may need to receive the refund since the withholding is under the trust EIN. Please note I am a subscriber.