State May Escheat IRA under Unclaimed Property Law

Document Excerpt

(1) Under the facts presented, the payment by Trustee Y of Individual C’s interest in IRA O to the State J unclaimed property fund, as required by State J law, is subject to federal income tax withholding under § 3405. (2) The payment by Trustee Y is subject to reporting under § 408(i).

Link

https://www.irs.gov/pub/irs-drop/rr-18-17.pdf

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