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SimplerIRA

Connecticut State Withholding

Taxable lump-sum IRA distributions are subject to Connecticut (CT) state withholding at a rate of 6.99%. Lump-sum distributions are defined as complete distributions of an entire IRA balance. All other taxable IRA distributions are subject to CT withholding at a rate of 6.99%, unless the IRA owner or beneficiary furnishes your financial organization with a Form CT-W4P, Withholding Certificate for Pension or Annuity Payments.

 
Distribution Type Without Form CT-W4P With Form CT-W4P
Taxable IRA lump-sum distributions 6.99% of the gross payment 6.99% of the gross payment
All other taxable IRA distributions 6.99% of the gross payment Withhold or do not withhold based on the elections made on Form CT-W4P
 

If Form CT-W4P is completed for a taxable IRA distribution that is not a lump-sum distribution, one of the following Withholding Codes must be entered on Form CT-W4P depending on the IRA owner's state withholding election for the distribution.

  • To waive state withholding, enter Withholding Code "E" on Line 1.
  • To withhold a set dollar amount, enter Withholding Code "E" and the specific dollar amount to be withheld on Line 2.