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State tax withholding for IRAs and qualified plans

Some states require residents to have state income tax withheld from retirement plan distributions.
Withholding is a pre-payment of state income tax that is a credit toward your current-year state income tax liability.

State withholding may be affected by the following criteria:

  • Type of retirement plan (IRA or qualified retirement plan)
  • State of residence for tax purposes
  • Eligibility to roll over a distribution
  • Distribution amount (a minimum amount may apply)
  • Type of distribution (single sum or periodic payments)

See State Tax Information (PDF) for additional information by state of residence.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.