State Withholding Tax Guidelines
If you request a distribution from your Individual Retirement Account (IRA) and you do not make an election regarding state tax withholding, TD AMERITRADE Clearing, Inc., will withhold (if required) at the maximum rate based on your state of residency.

Please note: If the distribution is from a Roth IRA, it may be exempt from state tax. State tax will only be withheld from your Roth IRA if you indicate this in the State Withholding Election section of the Roth IRA Distribution Request form.

  • If you reside in: AK, DC, FL, HI, NH, NV, SD, TN, TX, WA, WY

    • STATE INCOME WITHHOLDING TAX IS PROHIBITED
      We will not withhold state income tax from your distribution if you reside in these states, even if you elect to withhold state income tax.


  • If you reside in: AL, AR, AZ, CA, CO, CT, ID, IL, IN, KS, KY, MD, MI, MN, MO, MS, MT, NJ, ND, NM, NY, OH, PA, RI, SC, UT, VA, WV, WI

    • STATE INCOME TAX WITHHOLDING IS VOLUNTARY
      We will withhold state income tax only if you instruct us to do so. If you want state income taxes to be withheld, you must indicate the amount or percentage.

      CA residents: If you fail to make an election regarding state tax withholding, we will automatically withhold 10% of your federal income tax withheld to satisfy the state tax withholding amount.

      CO, CT, and MD residents: TD AMERITRADE Clearing, Inc. requires tax withholding amounts to be requested in whole dollar amounts for residents of the states of CO, CT, and MD. CT residents cannot elect less than $10 if they choose to withhold. MD residents cannot elect less than $5 if they choose to withhold.


  • If you reside in: GA, OR

    • STATE INCOME TAX WITHHOLDING IS MANDATORY
      We will withhold state income tax regardless of federal income tax election, unless you elect not to withhold. If you make no election, we will withhold at the maximum rate of:
      GA residents 6% of Gross Distribution
      OR residents 9% of Gross Distribution


  • If you reside in: DE, IA, LA, MA, ME, NE, NC, OK, VT

    • STATE INCOME TAX WITHHOLDING IS MANDATORY WHEN FEDERAL INCOME TAX IS WITHHELD
      You must elect to withhold state income tax when federal income tax is withheld from your distribution. If you do not make an election, we will withhold at the maximum rate of:

      DE residents 5%
      IA residents 5%
      LA residents You have the option to elect out of state withholding; otherwise, it is 6%.
      MA residents 5.30%
      ME residents 5%
      NE residents 5%
      NC residents 4.00%
      OK residents 5.65%
      VT residents You must withhold 24% of the federal income tax withheld.

 
TD AMERITRADE Clearing, Inc. advises you to contact your tax professional before making any election regarding state withholding. State law is subject to change and neither TD AMERITRADE Clearing, Inc. nor TD AMERITRADE, Inc. is responsible for changes in state law that may affect the accuracy of this communication.
 
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