5% owner is required to take a 70 1/2 in 1999. The owner has completed a Form W-4P showing 2 exemptions (he and spouse)of which withholding is to be calculated.

MRD = $15,000+

In order to calc w/holding, do we use payroll table for married person?

Thanks for any info.

To my knowledge, withholding is not required, so any amount you come up with should be fine.

This is not an eligible rollover distribution (if you are distributing only the required minimum) so the automatic 20% withholding is not required. However, it is subject to the regular withholding rules under Section 3405(a) for periodic payments and 3405(B) for non-periodic payments.

If this qualifies as a periodic payment, then you would treat the distribution as if it were wages and use the appropriate tax table. If a participant does not complete the W-4P, then you withhold using married and 3 exemptions.

If it is not a periodic payment, then you withhold at the old 10% rate.