Hello. I'm about to make the Traditional to Roth IRA conversion for the very first time. Very excited. I started the process on the Schwab platform and came across the following. I answer "No" to both correct? Just checking for the last time. Thanks!
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1. Distribution Amount: $5,500.00 |
2. Tax Withholding Election: |
Federal Income Tax Withholding Election: As required by federal law, Schwab will withhold 10.00% from your gross distribution for payment of federal income tax, unless you elect to increase the rate of withholding or elect not to have withholding apply. |
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State Income Tax Withholding Election: South Carolina As required by state law, Schwab will withhold South Carolina's minimum withholding rate of 0.00%, as determined by the legal address of record on your account. State tax withholding is voluntary regardless of whether or not you elected to have federal tax withheld. |
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