State withholding on retirement accounts

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 income taxes 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
AR1 5% of gross payment
CA1 10% of federal tax withheld
CT1,2 6.99% of gross payment
DC1 8.95% of gross payment
DE 5% of gross payment
IA 5% of gross payment
KS1 5% of gross payment
MA1 5.05% of gross payment
ME 5% of gross payment
MI1,3 4.25% of gross payment
NC1 4% of gross payment
NE 5% of gross payment
OK 5% of gross payment
OR1 8% of gross payment
VA 4% of gross payment
VT1 24% of federal tax withheld
All other states No state tax withholding is available
(even if your state has income tax)

1. Withholding for Bank IRA CDs available only in these states.

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.