FEBRUARY 2015
State Tax Withholding Information
for Individual Retirement Accounts
The following is a high level summary of the general state income tax withholding rules for IRA distributions. However, your withholding
options may be impacted by certain exceptions, limitations, or additional requirements which are not reflected in this document.
IF YOUR LEGAL STATE OF RESIDENCE IS:
YOUR WITHHOLDING OPTIONS ARE:
Iowa, Maine, Massachusetts, Nebraska, District of Columbia
If you elect to have federal income tax withheld, Morgan Stanley is required to
withhold state income tax. You may provide a percentage or flat dollar amount
equal to or greater than your state’s minimum tax withholding requirements.
North Carolina, Oklahoma, Oregon, Vermont
If you elect to have federal income tax withheld, Morgan Stanley is required to
withhold state income tax unless you elect no state income tax withholding. You
may provide a percentage or flat dollar amount equal to or greater than your
state’s minimum tax withholding requirements. If you are a resident of North
Carolina, you must complete the NC-4P Form prior to your distribution.
Arkansas, California, Michigan
State income tax withholding is required on distributions from your IRA
regardless of whether or not you elect federal income tax withholding. You
may elect no state income tax withholding. If you are a resident of Michigan
you must complete the MIW-4P form to opt out of withholding.
Alabama, Arizona, Colorado, Connecticut, Delaware,
Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky,
Louisiana, Maryland, Minnesota, Mississippi, Missouri,
Montana, New Jersey, New Mexico, New York, North Dakota,
Ohio, Pennsylvania, Rhode Island, South Carolina, Utah,
Virginia, West Virginia, Wisconsin
State income tax withholding is voluntary and Morgan Stanley will withhold upon
your request. You may provide a percentage or flat dollar amount to be withheld.
Alaska, Florida, Nevada, New Hampshire, South Dakota,
Tennessee, Texas, Washington, Wyoming
State income tax withholding is not available.
IF YOUR LEGAL STATE OF RESIDENCE IS:
YOUR MINIMUM STATE INCOME TAX WITHHOLDING RATE * IS:
Arkansas
3%
North Carolina
4%
Michigan
4.25%
Iowa, Maine, Nebraska, Oklahoma
5%
Massachusetts
5.15%
Oregon
8%
District of Columbia
8.95%
California
10% of federal income tax amount withheld
Vermont
24% of federal income tax amount withheld
Alabama, Arizona, Colorado, Connecticut, Delaware,
Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky,
Louisiana, Maryland, Minnesota, Mississippi, Missouri,
Montana, New Jersey, New Mexico, New York, North Dakota,
Ohio, Pennsylvania, Rhode Island, South Carolina, Utah,
Virginia, West Virginia, Wisconsin
There is no minimum percentage rate. You may provide any percentage amount.
*Please Note: Some states may require a minimum state income tax withholding amount, which is not reflected in this document.
STATE TAX WITHHOLDING INFORMATION FOR INDIVIDUAL RETIREMENT ACCOUNTS
Morgan Stanley is providing this general information to assist you in understanding state tax withholding requirements. Morgan Stanley obtained this
information from sources believed to be reliable, however the accuracy or timeliness may not be guaranteed due to the fact that state tax laws are subject
to change and interpretation. Please contact your tax advisor regarding your state’s withholding laws and your tax withholding elections.
Tax laws are complex and subject to change. Morgan Stanley Smith Barney LLC (“Morgan Stanley”), its affiliates and Morgan Stanley Financial Advisors
and Private Wealth Advisors do not provide tax or legal advice and are not “fiduciaries” (under the Internal Revenue Code or otherwise) with respect to
the services or activities described herein except as otherwise provided in a written agreement with Morgan Stanley. Individuals are encouraged to consult
their tax and legal advisors regarding any potential tax and related consequences of any investments made under an IRA. Information as of January 1, 2015.
© 2015 Morgan Stanley Smith Barney LLC, member SIPC. All rights reserved.
CRC 1017022 CS 8150433 02/15