just want to confirm the tax treatment. the distribution is from a DC plan, the participant had not started RMD's and the beneficiary is taking the entire amount. i think you would withhold 20% even though it is going to a guardianship on behalf of the kids. anyone disagree or agree?

I disagree. Since mandatory withholding only applies to eligible rollover distributions, it does not come into play when the beneficiary is anyone other than a surviving spouse or alternate payee spouse.