Fillable Ira Distribution Request Form (Page 4 of 5) in pdf

SCOTTRADE SDIRA DISTRIBUTION REQUEST - CUSTOMER COPY (PLEASE RETAIN FOR YOUR RECORDS)

REQUIRED MINIMUM DISTRIBUTIONS

You must take a Required Minimum Distribution (RMD) from your Traditional IRA or SIMPLE IRA by April 1 of the year

following the year you attain age 70 ½ (Required Beginning Date - RBD) for your 70 ½ year and by Dec. 31of the end of

that year and by Dec. 31 of each year thereafter. Note that if you elect to defer your first-year RMD, you will be required to

withdraw two Required Minimum Distributions the next year. A 50% penalty tax may apply if you fail to take a timely RMD.

Required Minimum Distributions do not apply to Roth IRAs.

WITHHOLDING NOTICE INFORMATION (FORM W-4P/OMB No. 1545-0074)

Basic Information About Withholding From Pension and Annuities

Generally, federal income tax withholding applies to payments made from pension, profit sharing, stock bonus, annuity, and

certain deferred compensation plans, IRAs, and commercial annuities.

Purpose of Form W-4P

Unless you elect otherwise, federal income tax will be withheld from payments from Individual Retirement Accounts (IRAs). You can

use Form W-4P, or a substitute form, such as that contained on this form, furnished by the Trustee or Custodian, to instruct your

trustee or custodian to withhold no tax from your IRA payments (or to revoke this election). This substitute form should be used only for

distributions from IRAs which are payable on demand.

Nonperiodic Payments

Payments from IRAs that are payable upon demand are treated as nonperiodic payments for federal income tax purposes. Generally,

nonperiodic payments must have income tax withheld at a rate of not less than 10%.

You can elect to have no income tax withheld from a nonperiodic payment (IRA payment) by filing Form W-4P or a substitute form with

the Trustee or Custodian and checking the appropriate box on that form. Your election will remain in effect for any subsequent

distribution unless you change or revoke it.

A U.S. citizen or resident alien may not waive withholding on any distribution delivered outside of the U.S. or its possessions.

Distributions to a nonresident alien are generally subject to a tax withholding rate of 30%. A reduced withholding rate, including

exemption, may apply if there is a tax treaty between the nonresident alien’s country of residence and the United States, and the

nonresident alien submits Form W8-BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, or

satisfies the documentation requirements as provided under the regulations.

For more information, please see Publication 505, Tax Withholding and Estimated Tax, and Publication 515, Withholding of Tax on

Nonresident Aliens and Foreign Entities, available from most IRS offices.

Caution: Remember that there are penalties for not paying enough tax during the year, through either withholding or estimated tax

payment. New retirees should see Publication 505. It explains the estimated tax requirements and penalties in detail. You may be able

to avoid quarterly estimated tax payments by having enough tax withheld from your IRA using Form W-4P.

Revoking the Exemption from Withholding

If you want to revoke your previously filed exemption from withholding, file another Form W-4P with the trustee or custodian and check

the appropriate box on that form.

Statement of Income Tax Withheld from Your IRA

By January 31 of next year, you will receive Form 1099R showing the total amount of your IRA withdrawals and the total federal/

state income tax withheld during the year. Copies of Form W-4P will not be sent to the IRS.

Signature

Your signature is required to certify that the information you have provided is true and correct and that you are aware of all the

circumstances affecting this IRA withdrawal.

SF2035/11-15

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Ira Distribution Request Form Page 4