Looking for some calirification. I realize that qualified plan distributions not eligible for rollover are not subject to 20% mandatory Fed withholding. Code section 3405b states that any non-periodic distribution not eligible for rollover (hardships, MRD's, etc.) will have 10% Fed taxes withheld unless payee elects not to. As a plan administrator must we comply with these regs or can we simply state in our distribution paperwork & tax notices that there will be no withholding done on these payments? Thanks.