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DC Withholding Requirements on Retirement Distributions Revised

DC passed emergency legislation last Friday, February 24, 2012, mostly repealing the new-for-2011 withholding requirements on retirement distributions to DC residents.  Previously, DC required top-rate (8.95%) withholding on all retirement distributions to DC residents.  Effective immediately, the withholidng requirement is repealed for periodic and non-lump-sum retirement plan distributions.  The withholding requirement now only applies to lump-sum distributions, but excludes:

 

(1) any portion of a lump-sum payment that was previously subject to tax;

(2) an eligible rollover distribution that is done as a trustee-to-trustee transfer; and

(3) a rollover from an IRA to a traditional or Roth IRA that is done as a trustee-to-trustee transfer.

 

See the DC notice here.

Comments   

 
0 #1 Robert Lopez CPA 2012-04-05 14:17
Not directly relevant but like your site. the issue with tax law is complexity and the resulting failure of accountants to keep up with never ending tax law changes.

In Australia your typical small suburban accountancy practice often finds it difficult to attract quality staff. The lack of talented and motivated employees can severely limit a suburban firm?s capacity to deliver proactive taxation and accounting solutions. These limitations will often result in the firm being forced to limit it services to lower end compliance functions. This in turn further impedes the firm?s ability to attract staff because compliance can be repetitive and boring for aspiring graduates and as a result the firm is no longer a dynamic or interesting place to work. ??The solution to the problem is to recognise that if you want good staff the firm needs to be structured to produce them. It is a lot easier than you might think ? it is all about office culture and systems. ?
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