do an ira withhold taxes on withdrawals
When you withdraw funds from an Individual Retirement Account, the Internal Revenue Service does not require the account custodian to withhold a certain percentage of the withdrawal to cover taxes, whereas withdrawals from 401k accounts involve a mandatory federal withholding of 20 percent.hose who hold Roth IRAs for at least five years and until age 59 1/2, do not pay taxes on withdrawals of principal or earnings. People who access funds before age 59 1/2 must pay ordinary income tax on the earnings, as well as a 10 percent premature withdrawal penalty.