Mandatory 20% Withholding
Gold IRA Glossary
A federal rule requiring workplace plans such as 401(k)s to withhold 20% for taxes when they pay an eligible rollover distribution directly to you instead of to another retirement account. To roll over the full amount within the 60-day window, you must make up the withheld 20% from your own money, then recover it when you file your tax return. A direct rollover to a Gold IRA avoids the withholding completely.
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