SoloK Distributions and Witholding.

[Robert Reineri]

I was recently told that  for a solo 401K distribution ,  it was required that you sent 20% withholding  to the IRS by the 15th of the following month .  I am over 59 and a half .

This seems odd to me since in a regular IRA, you can specify no withholding and make quarterly payments. Even better, you can make an entire tax year payment from the last distribution of the year and incur no late fees. This is because it's treated as having been paid throughout the year as long as it's done automatically through the IRA custodian.

I'd like to look into a solo k, but I'm not about to start loaning the IRS interest free money throughout the year.

I'm not going to name the company, but I was given this information directly by a solo 401K provider. Was I given bad information or is this simply something peculiar to the 401K?