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Withhold Taxes on Distribution to Deceased IRA Owner's Nephew?
Compliance Headquarters
Feb. 4, 2004
Excerpt: Question: One of our IRA owners died leaving his entire traditional IRA to his nephew. The nephew wants to take a total distribution. Do we withhold income taxes or is he on his own at tax time? Answer: As a traditional IRA custodian/trustee you are a payer required to provide any IRA owner, or beneficiary after an owner's death, with IRS Form W-4P ... prior to his/her receiving a distribution.
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