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Are lump sum and eligible rollovers from qualified pension and annuity plans subject to withholding?

April 26, 2017Annuity eligible lump Pension plans qualified rollovers Subject withholding

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Are lump sum and eligible rollovers from qualified pension and annuity plans subject to withholding?

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Generally, lump sum and eligible rollovers that are subject to federal withholding also are subject to Massachusetts withholding, unless such distributions are of a type that would never be subject to Massachusetts personal income taxation. For more information, please see TIR 02-18, Tax Changes Contained in “An Act Enhancing State Revenues” and Related Acts, or TIR 93-3, Massachusetts Income Tax Withholding on Eligible Rollover Distributions from I.R.C. s.401 Qualified Plans and s.403(b) Annuities.