Answer

Digit - sorry but I was away from the computer (yes proof that these are real people you are dealing with!)

30% sounds like it could be withholding for state and possibly local income taxes. The portion sounds about right.

I'd be curious to see exactly how this is panning out. Who is the party that is doing the withholding? Is it the county, or a plan administrator? Or did an estate cash in the account and is now passing on to you the money leftover after tax? If it was the county or the plan Administrator, did they give you an option to state that you were not subject to withholding? (It may be that under the plan they are required to withhold.)

If it is withholding, you will get those sums credited to you at the respective tax departments, and you will then list that as taxes paid toward your actual obligations when the income is reported on your personal income tax return.

Please feel free to ask any followup questions, including later if you get some more information about this distribution. I'm not always at the computer, but when I see something from you on my list I'll get back to you!

I hope this has helped. Let me know if you have any followup questions. If none, please remember to click on the ACCEPT link so that I may receive credit for working on this topic with you. (I'd greatly appreciate it!)

Thank you,

Dan

--------------

The information provided is general in nature only and should not be construed as legal advice or to create an attorney-client relationship. You should always consult with a lawyer in your state.

PS: If an answer appears to you to have been very helpful, or to have taken above average expertise and/or research, or if the answer shows an above average amount of time and dedication devoted to your issue, a bonus is nice way to say "Thank you". Thanks!