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What is the tax consequence of receiving my accumulated DROP balance directly or electing to rollover the funds into an IRA?

April 26, 2017accumulated Balance consequence directly drop Electing funds rollover tax

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What is the tax consequence of receiving my accumulated DROP balance directly or electing to rollover the funds into an IRA?

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If you elect to receive your accumulated DROP funds directly, the IRS requires a 20% federal tax withholding from your accumulated total. If you elect to rollover the accumulated DROP funds into an IRA, there will be no federal tax withheld.