Tax Reporting: Federal Income Tax Withholding on IRA Conversions

An IRA conversion to a Roth is subject to federal income tax withholding at a minimum rate of 10%, unless you elect not to have income tax withholding apply or if you choose another tax withholding rate to apply to the distribution. Consult your tax advisor.


IRS Circular 230 Notice: The information contained in this FAQ is provided for information purposes only, is not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations and does not resolve any tax issues in your favor. Refer to IRS Publication 590, Individual Retirement Accounts for additional information on IRAs in general and consult your tax advisor about your individual tax situation.