Thank you for using justanswer. Yes, you may elect to have the taxes withheld before you receive the IRA distribution. In fact, as long as your are under age 59 1/2 IRS requires at least 20% withheld (10% of that is to cover the early withdrawl penalty). The only way to stop the 20% withholding
is to sign a waiver.
You may request that more be withheld for Federal, especially if, along with your other income, the additional $20,000 jumps you to the next tax bracket. (See below)
These rates are AFTER your standard deduction
( or Itemized Deductions
if you have enough to itemize ) and After all personal
exemptions have been subtracted.
You may also ask to have CT tax withheld on your distribution. The additional tax on the early distribution will add approximately $156 if you're single, $0 if your married, but remember, you must also add any other income to the $20,000 and look at the tables
to see if the additional income (W2's interest
income, rental income, etc) to see if that changes the picture.
Please see the tax rate
table beginning on page 30 :CT-1040
Again, here's the web address is the link doesn't work:
I hope this helps