State Withholding Requirements - PB&H Benefits

State Withholding Requirements

In addition to federal income tax withholding (20% for eligible rollover distributions, 10% for non-eligible rollover distributions), your retirement plan distribution may also be subject to state income tax withholding. We will withhold state income tax when required according to the following default withholding rules for your state of residency.

State

Tax Rate Withholding requirements and exceptions

Mandatory when Federal income tax is withheld

Arkansas (AR) California (CA) Delaware (DE)

3.0% / 5.0% 10.0% 5.00%

Non-eligible rollover distribution: 3.0%. Eligible rollover distribution: 5.0%. 10% of federal withholding amount. To opt-out, Form DE -4P or W-4P is required.

District of Columbia (DC)

8.95%

Applies to lump sum total distributions.

Iowa (IA)

5.00%

Available exclusions may apply if form IA W-4P is provided.

Kansas (KS)

4.5%

Applies to eligible rollover distributions only.

Maine (ME)

5.00%

Maryland (MD)

7.75% Applies to eligible rollover distributions only.

Massachusetts (MA) Michigan (MI) Mississippi (MS)

5.1% 4.25% 5.00%

To elect a different withholding amount or to opt-out, Form MI W-4P is required. Required if an early or excess distribution is taken.

Nebraska (NE)

5.00%

North Carolina (NC)

4.00% Applies to eligible rollover distributions only.

Oklahoma (OK) Oregon (OR)

5.00% 8.00%

Applies to eligible rollover distributions only.

Vermont (VT)

2.4% / 4.8% Non-eligible rollover distribution: 2.4%. Eligible rollover distribution: 4.8%.

Virginia (VA)

4.00% Applies to eligible rollover distributions only.

Voluntary ? State income tax will be withheld only if you instruct us to withhold it

Alabama (AL) Arizona (AZ) Colorado (CO) Connecticut (CT) Georgia (GA) Idaho (ID) Illinois (IL) Indiana (IN)

Kentucky (KY) Louisiana (LA) Minnesota (MN) Missouri (MO) Montana (MT) New Jersey (NJ) New Mexico (NM) New York (NY)

North Dakota (ND) Ohio (OH) Pennsylvania (PA) Rhode Island (RI) South Carolina (SC) Utah (UT) West Virginia (WV) Wisconsin (WI)

No State Withholding Option

Alaska (AK) Florida (FL) Hawaii (HI) Nevada (NV)

New Hampshire (NH) South Dakota (SD) Tennessee (TN)

Texas (TX) Washington (WA) Wyoming (WY)

See next page for further details............

Updated 5/2016

How to Opt Out of State Withholding: For states that allow a participant to opt out of state withholding, check the `I do not want state income tax withheld' box on the distribution form. Also, some states may require the completion of their Form W-4P (State Withholding Certificate for Pension or Annuity Payments). Note: Even if you elect to opt out, state withholding will be processed for states that are mandatory. Further Information: Please understand that you may owe additional taxes in addition to the amount withheld. While PB&H Benefits makes every effort to obtain information about state tax laws from sources believed to be reliable, PB&H Benefits 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 regarding your state's withholding laws. Please contact the PB&H Benefits, LLC hotline if you have any questions. Toll free 1-888-629-2363 or pbhbenefits@

Updated 5/2016

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