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Request an IRA Distribution Page 2 of 10
3 Withhold Taxes from Your Distribution
Distributions from your IRA (excluding those from Roth IRAs) are generally subject to federal (and possibly state) income
tax. Even if you elect in writing not to have federal and/or state income tax withheld, you are liable for payment of federal
and state income taxes, if applicable, on the taxable portion of your distribution. You may also be subject to tax penalties
under the estimated tax payment rules if your withholding and payment of estimated tax, if any, are not adequate. For
more information, see IRS Publication 590-B.
Your tax withholding election will remain in effect on all distributions from this IRA until you change or revoke it. You may
change or revoke your tax withholding election at any time by submitting your request to Schwab.
• U.S. citizens who are foreign residents are subject to a 10% minimum withholding rate and cannot opt out of
• Non-resident aliens are subject to a 30% tax withholding rate and must submit a valid IRS Form W-8BEN to obtain an
available reduced tax treaty rate.
• Generally, Roth IRA distributions are not taxable. Unless you have an existing election on file or elect to withhold on this
form, we will not withhold taxes from your Roth IRA distribution.
A. Federal Income Tax Withholding
Schwab is required to withhold 10% from your gross distribution for payment of federal income tax unless you choose
not to have federal income tax withheld. You may elect not to have withholding apply to your distribution by selecting
the option below, and signing and dating this form. If you elect not to have withholding apply to your distribution, or if
you do not have enough tax withheld, you may be responsible for payment of estimated taxes. You may also incur
penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient.
I do not want federal income tax withheld.
I want federal income tax withheld at the rate of %.
(Federal tax withholding must be a whole number, at
least 10%, and not more than 99% when combined
with state income tax withholding.)
B. State Income Tax Withholding
Refer to the State Income Tax
Withholding Information sheet
for specific information
concerning your state’s
State income tax withholding from your distribution may be required. In some cases, you may elect not to have
withholding apply, or you may elect to increase the rate of withholding. In other cases, state income tax withholding
may not be available.
While Schwab makes every effort to obtain information about state tax laws from sources believed to be reliable,
Schwab cannot guarantee the accuracy or timeliness of state tax withholding information because state tax laws are
subject to constant change and interpretation. We recommend that you contact your tax advisor regarding your tax
withholding elections and to answer any questions that you may have.
If you do not make an election, Schwab will apply withholding (if required) at the minimum rate based on the laws
for your state of residency as determined by the legal address of record on your account.
I do not want state income tax withheld.
I want state income tax withheld at the rate of %.
(State tax withholding must be at least your state’s
minimum tax rate and not more than 99% when
combined with federal income tax withholding.)
Note: If you move between states with differing withholding laws, Schwab will apply withholding (if required) at the rate
you provided above or at the minimum rate based on the laws for your new state of residency, whichever is greater.
4 Tell Us the Amount and Frequency of Your Distribution
It is important that you ensure that there is sufficient cash available in your account by the date of distribution. If you
want a cash distribution from positions other than your available sweep cash balance, you may place a trade on
Schwab.com at a discounted commission rate or call us at 1-800-435-4000 to place a trade with a broker. Please do so
prior to submitting this form. If your IRA is enrolled in a managed product, contact your service provider for the