The stakes are high for financial organizations that do not apply federal and state withholding on distributions that are subject to the withholding requirements. If your financial organization doesn’t withhold, it could be required to pay the amount that was supposed to be withheld and face IRS and state penalties. While federal withholding requirements can be daunting, state withholding laws can be cumbersome and difficult to administer.
Read MoreFinancial organizations that serve as an IRA trustee or custodian are tasked with many responsibilities to maintain compliance. One of those responsibilities, which can carry hefty penalties if an organization is found to be noncompliant by the IRS, involves federal tax withholding requirements on IRA distributions.
Read MoreWithholding is a key area of IRA compliance and the penalties associated with failing to timely provide withholding notices to clients are costly. For example, the penalty for failing to timely provide a withholding notice is $100 per failure up to a maximum annual amount of $50,000. Ouch.
Read MoreSome days, the responsibilities of maintaining IRA compliance can feel like a heavy lift. But it’s especially important to stay on top of withholding notice requirements. Withholding remains a key area of IRA compliance, and the costs associated with failing to timely provide withholding notices to clients can be steep.
Read MoreThe costs associated with failing to timely provide withholding notices to clients can be steep. Now is the time start preparing to mail your IRA owners their withholding notices—before many of them begin taking IRA distributions in January.
Read MoreNeglecting your IRA withholding notice obligations can be costly, especially after the SECURE Act upped the penalty. Find out how you can limit your risk of noncompliance when meeting IRA withholding notice requirements.
Read More
