State withholding on retirement accounts
| State | Percentage |
|---|---|
| AR1,9 | Up to 5% of gross payment |
| CA1 | 10% of federal tax withheld |
| CT1,2 | 6.99% of gross payment |
| DC1,8 | 10.75% of gross payment |
| DE4,6 | 5% of gross payment |
| IA5 | 5% of gross payment |
| KS1,5 | 5% of gross payment |
| MA1,5 | 5% of gross payment |
| MD4,7 | 7.75% of gross payment |
| ME5 | 5% of gross payment |
| MI1,3 | 4.25% of gross payment |
| NC1 | 4% of gross payment |
| NE5 | 5% of gross payment |
| OK5 | 5% of gross payment |
| OR1 | 8% of gross payment |
| VA4 | 4% of gross payment |
| VT1,5 | 30% of federal tax withheld |
| All other states | No state tax withholding is available (even if your state has income tax)6,7 |
Next steps:
Take an IRA, ESA, or Qualified Retirement Plan distribution (Login required)
1. Withholding is available for Bank IRA CDs in these states: AR, CA, CT, DC, KS, MA, MI, NC, OR, VT.
2. 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.
3. Michigan residents 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.
4. Mandatory state withholding for DE, MD, and VA are only applicable to distributions from Qualified Retirement Plans.
5. State withholding is mandatory if federal withholding is elected.
6. State withholding on IRA distributions is voluntary and is available online if Federal Withholding elected for these states: DE, GA.
7. State withholding is voluntary but only available through the paper form for these states: AL, CO, ID, IL, IN, LA, MD, MO, MT, NJ, NM, NY, PA, UT, WI.
8. DC withholding is mandatory for all lump sum distributions, except for those taken from Roth IRA accounts.
9. Mandatory state withholding for AR is 5% for Qualified Retirement Plans and 3% for IRA accounts.