Unless you instruct us not to withhold taxes, the IRS requires us to withhold at least 10% of your withdrawals from traditional IRAs, SEP-IRAs, and SIMPLE IRAs for federal income taxes.
When you request a distribution online, by phone, or by mail, you can:
• Let us automatically withhold 10% of the distribution.
• Ask us to withhold more than 10% of the distribution.
• Ask us not to withhold taxes at all.
If your distribution is delivered outside of the United States, you may not elect out of federal income tax withholding, and a withholding rate of more than 10% may apply.
If you instruct us not to withhold taxes, you’ll still owe federal income tax on the taxable portion of your IRA distributions, and you may have to make estimated tax payments. ...