Benefits Handbook

An RMD is not an eligible rollover distribution. Federal income tax will be withheld as if the distribution was a payment of wages to you and you were married claiming three withholding allowances unless you make a different withholding election.

If you elect not to have withholdings apply, you are still liable for any Federal income taxes due on the taxable portion of your distribution, and you could incur penalties if your withholding or estimated tax payments for the year are not enough.