IRA Annual Withholding Notice
For the annual withholding notice, am I required to mail out IRS Form W-4P every six months? Or if my forms require a withholding election during every subsequent change, can I simply provide my clients with the equivalent reminder of their withholding options on their periodic statement?
Permalink Submitted by Alan - IRA critic on Tue, 2021-06-08 18:50
What type of plan are you referring to? An annual withholding Notice is generally not required for IRA accounts and W-4P is also not required unless the IRA custodian requires it. Many IRA Custodians allow owners to choose their IRA default withholding rate and that rate remains on file until IRA owner changes it.