State withholding on retirement accounts

This information is provided to help you understand state income tax withholding requirements for retirement account distributions. If you request a distribution from your retirement account and have not made an election regarding state tax withholding, your state of residence may require withholding at a statutory minimum rate. E*TRADE only withholds state withholding on mandatory withholding states, and not on any voluntary states. Unless you elect otherwise, state income tax will be withheld from the following mandatory states:
State Percentage
AR 5% of gross payment
CA 10% of federal tax withheld
CT1 6.99% of gross payment
DC 8.95% of gross payment
DE 5% of gross payment
GA 6% of gross payment
IA 5% of gross payment
KS 5% of gross payment
MA 5.10% of gross payment
ME 5% of gross payment
MI2 4.25% of gross payment
NC 4% of gross payment
NE 5% of gross payment
OK 5% of gross payment
OR 8% of gross payment
VA 4% of gross payment
VT 24% of federal tax withheld
All other states No state tax withholding is available
(even if your state has income tax)

1. Connecticut residents are subject to mandatory CT state tax withholding, regardless of their federal tax withholding election. The withholding rate is 6.99% unless Form CT-W4P is provided with a distribution request. If a properly completed Form CT-W4P is submitted, E*TRADE will determine the amount of required state income tax withholding on the distribution, which may be different than 6.99%. The mandatory state tax withholding does not apply to Roth IRA accounts. 

2. Michigan residents born on or after 01/01/1946 are subject to mandatory MI state tax withholding, regardless of their federal tax withholding election. The mandatory state tax withholding does not apply to Roth IRA accounts. To opt out of this withholding, Form MI W4-P must be provided with any distribution requests.

In addition, state law is subject to changes that may affect the accuracy of the above information.