Jan 23, 2026
IRA Close or Withdrawal State IRA Withholding Requirements
Traditional IRA required state withholdings.
By Stash Team
Last updated: June 5, 2026
If you are requesting a partial withdrawal from your Traditional Individual Retirement Account (IRA), or closing it completely, you must complete an IRA withdrawal form before the withdrawal can be processed. The form asks you to choose federal and state tax withholding. State withholding rules vary by state, and your withdrawal may be delayed or rejected if the state withholding section is incomplete or does not meet the requirement for your state.
This guide reflects Stash processing requirements and state withholding rules as of June 5, 2026. State tax rules and forms can change, so consider speaking with a tax professional if you are unsure what to choose.
If you have additional questions, please call us at 800-205-5164 from 8:00 a.m. to 8:00 p.m. ET Monday through Friday, or email us at [email protected].
Before you submit your IRA withdrawal form
Traditional IRAs: State withholding requirements may apply to taxable Traditional IRA distributions.
Roth IRAs: Roth IRA distributions do not have mandatory state or federal withholding requirements through Stash. You may still elect withholding if you wish.
Federal withholding: Federal withholding generally defaults to 10% for Traditional IRA withdrawals, but you may be able to change or waive this amount on your withdrawal form.
State of residence: Your state withholding requirement is based on the state of residence Stash has on file for you at the time of the withdrawal.
Opt-out forms: If your state requires an opt-out form and you do not want state tax withheld, you must complete and return the required form before the withdrawal can begin.
If your state requires an opt-out form, click the link in the Opt-out information column below to access the form or state forms page. Once completed, email the form to [email protected]. It may take up to three business days for us to process your form and begin the withdrawal process.
Definitions
Voluntary: State withholding is allowed but not required. If you choose to withhold, the amount must meet any minimum listed below.
Mandatory when federal withholding is elected: State withholding is required if you elect federal withholding. If you waive federal withholding, state withholding may be optional unless your state says otherwise.
Mandatory opt-out: State withholding is required unless you qualify to opt out and submit the required state form or certification.
n/a: State withholding is not available or is not applicable for Stash IRA withdrawals.
State IRA withholding requirements for Traditional IRA withdrawals
State | Withholding option | 2026 minimum or required amount | Opt-out information or required forms |
|---|---|---|---|
Alabama | Voluntary | No minimum | There is no required minimum withholding. |
Alaska | n/a | n/a | There is no required minimum withholding. |
Arizona | Voluntary | No required minimum | If you choose Arizona withholding, use one of the state-supported withholding percentages. |
Arkansas | Mandatory opt-out | 3% | You must either withhold at least 3% for state tax withholding or submit Arkansas Form AR-4P. |
California | Voluntary | 10% of federal withholding if elected | You are not required to withhold California tax. If you choose California withholding and federal withholding applies, the California amount must generally be at least 10% of the federal withholding amount. |
Colorado | Voluntary | 4.40% | You are not required to withhold Colorado tax. If you choose withholding, it must be at least 4.40%. |
Connecticut | Mandatory opt-out | 6.99% | You must either withhold at least 6.99% for state tax withholding or submit Connecticut Form CT-W4P. |
Delaware | Voluntary | No minimum | There is no required minimum withholding. |
Florida | n/a | n/a | There is no required minimum withholding. |
Georgia | Voluntary | 5.19% | You are not required to withhold Georgia tax. If you choose withholding, it must be at least 5.19%. |
Hawai’i | n/a | n/a | There is no required minimum withholding. |
Idaho | Voluntary | 5.30% | You are not required to withhold Idaho tax. If you choose withholding, it must be at least 5.30%. |
Illinois | Voluntary | 4.95% | You are not required to withhold Illinois tax. If you choose withholding, it must be at least 4.95%. |
Indiana | Voluntary | No minimum | There is no required minimum withholding. |
Iowa | Mandatory opt-out | 5% | You must either withhold at least 5% for state tax withholding or submit Iowa Form IA W-4P. If you are age 55 or older by December 31 of the distribution year, you may be able to waive Iowa withholding without submitting the form. |
Kansas | Voluntary | No minimum | There is no required minimum withholding. |
Kentucky | Voluntary | 3.50% | You are not required to withhold Kentucky tax. If you choose withholding, it must be at least 3.50%. |
Louisiana | Voluntary | No minimum | There is no required minimum withholding. |
Maine | Mandatory when federal withholding is elected | 5% | If Maine withholding is required or elected, it must be at least 5%. |
Maryland | Voluntary | No minimum | There is no required minimum withholding. |
Massachusetts | Mandatory when federal withholding is elected | 5% | If Massachusetts withholding is required or elected, it must be at least 5%. |
Michigan | Mandatory opt-out | 4.25% | You must either withhold at least 4.25% for state tax withholding or submit Michigan Form MI W-4P. |
Minnesota | Mandatory opt-out | 6.25% | You must either withhold at least 6.25% for state tax withholding or submit Minnesota Form W-4MNP. |
Mississippi | Voluntary | No minimum | There is no required minimum withholding. |
Missouri | Voluntary | 4.70% | You are not required to withhold Missouri tax. If you choose withholding, it must be at least 4.70%. |
Montana | Voluntary | No minimum | There is no required minimum withholding. |
Nebraska | Mandatory when federal withholding is elected | 5% | If Nebraska withholding is required or elected, it must be at least 5%. |
Nevada | n/a | n/a | There is no required minimum withholding. |
New Hampshire | n/a | n/a | There is no required minimum withholding. |
New Jersey | Voluntary | No minimum | There is no required minimum withholding. |
New Mexico | Voluntary | No minimum | There is no required minimum withholding. |
New York | n/a | n/a | There is no required minimum withholding through Stash. |
North Carolina | Mandatory opt-out | 3.99% | You must either withhold at least 3.99% for state tax withholding or submit North Carolina Form NC-4P. |
North Dakota | Voluntary | No minimum | There is no required minimum withholding. |
Ohio | Voluntary | No minimum | There is no required minimum withholding. |
Oklahoma | Mandatory opt-out | 4.50% | You must either withhold at least 4.50% for state tax withholding or submit Oklahoma Form OK-W-4-R. |
Oregon | Mandatory opt-out | 8% | You must either withhold at least 8% for state tax withholding or submit Oregon Form OR-W-4. |
Pennsylvania | n/a | n/a | There is no required minimum withholding. |
Rhode Island | Voluntary | No minimum | There is no required minimum withholding. |
South Carolina | Voluntary | No minimum | There is no required minimum withholding. |
South Dakota | n/a | n/a | There is no required minimum withholding. |
Tennessee | n/a | n/a | There is no required minimum withholding. |
Texas | n/a | n/a | There is no required minimum withholding. |
Utah | Voluntary | 4.50% | You are not required to withhold Utah tax. If you choose withholding, it must be at least 4.50%. |
Vermont | Mandatory when federal withholding is elected | 30% of federal withholding | If federal withholding is required or elected, Vermont withholding must generally be at least 30% of the federal withholding amount. If you waive federal withholding, you may still elect Vermont withholding with no minimum. |
Virginia | Voluntary | No minimum | There is no required minimum withholding. |
Washington | n/a | n/a | There is no required minimum withholding. |
Washington D.C. | Voluntary for partial withdrawals; mandatory for full account closures | No minimum for partial withdrawals; 10.75% for full account closures | Washington D.C. allows voluntary withholding with no minimum on partial IRA distributions. If you are fully closing your IRA account, you must withhold at least 10.75%. |
West Virginia | Voluntary | No minimum | There is no required minimum withholding. |
Wisconsin | Voluntary | No minimum | There is no required minimum withholding. |
Wyoming | n/a | n/a | There is no required minimum withholding. |
Notes
California: If you waive federal withholding, you may still elect California withholding with no required minimum.
Iowa: If the IRA owner is age 55 or older by December 31 in the year the distribution is taken, Iowa retirement income rules may allow state withholding to be waived without submitting IA W-4P. If Iowa withholding is elected, the Stash minimum remains 5%.
Vermont: If federal withholding is required or elected, Vermont withholding is generally mandatory at 30% of the federal withholding amount. If federal withholding is waived, Vermont withholding may be elected with no minimum.
Washington D.C.: Washington D.C. allows voluntary state withholding with no minimum on partial IRA distributions. A mandatory 10.75% withholding rate applies to total account distributions.
Frequently asked questions
Do Roth IRA withdrawals require state tax withholding?
No. Roth IRA withdrawals through Stash do not have mandatory federal or state withholding requirements. You may elect withholding if you want to, but the state minimums in the table apply to Traditional IRA withdrawals.
What happens if I leave the state withholding section blank?
Your withdrawal may be rejected or delayed. If your state requires withholding or an opt-out form, Stash needs the correct withholding election or completed form before processing your withdrawal.
Can I choose not to have state taxes withheld from my Traditional IRA withdrawal?
In many states, yes. Some states allow you to opt out by selecting no state withholding. Other states require a completed opt-out form before Stash can process the withdrawal without state withholding.
Why does federal withholding default to 10%?
Traditional IRA distributions are generally subject to federal withholding unless you elect a different amount or waive withholding when allowed. Stash’s withdrawal form defaults federal withholding to 10%, but you may be able to adjust it.
Which state’s withholding rules apply if I moved?
Stash uses the state of residence on your account at the time your withdrawal is processed. If you recently moved, update your Stash account information before submitting your withdrawal request.
Does withholding cover my full tax bill or early withdrawal penalty?
Not necessarily. Withholding is a prepayment of tax and may not equal your final federal or state tax liability. If you take a taxable IRA distribution before age 59½, an additional IRS early withdrawal tax may also apply unless an exception applies. Consider speaking with a tax professional about your situation.
Written by
Team Stash
We want to turn money into a source of hope and opportunity. We teach people how to build good habits, save more and make it easy and affordable to get started investing. So far, we’ve helped over 6 million people create a more secure financial future with our expert advice and award winning investing app.
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