can anyone please tell me if mandatory federal withholding applies to an ERD from a qualified retirement plan for less than $200, or does the de minimis rule still apply? is there somewhere on the web where i could find the treas. reg(s) to support this? thanks in advance for any and all help.

See IRS reg 31.3405©-1. Below is an excerpt from this reg.


Q-14: Must a payor or plan administrator withhold tax from an eligible rollover distribution for which a direct rollover
election was not made if the amount of the distribution is less than $200?

A-14: No. However, all eligible rollover distributions received within one taxable year of the distributee under the same
plan must be aggregated for purposes of determining whether the $200 floor is reached. If the plan administrator or payor
does not know at the time of the first distribution (that is less than $200) whether there will be additional eligible rollover
distributions during the year for which aggregation is required, the plan administrator need not withhold from the first
distribution. If distributions are made within one taxable year under more than one plan of an employer, the plan
administrator or payor may, but need not, aggregate distributions for purposes of determining whether the $200 floor is
reached. However, once the $200 threshold has been reached, the sum of all payments during the year must be used to
determine the applicable amount to be withheld from subsequent payments during the year.