Michigan Lowers Required Tax Withholding for IRA Distributions

 The Good News: 

If you are currently taking distributions from an IRA account the minimum withholding tax rate just dropped.  Effective October 1, 2012 Michigan taxpayers have the option to reduce withholding tax from the current minimum of 4.35% to 4.25%.

More Good News:  

Changing your Michigan withholding tax amount is far less complicated than the Tax Code.  Signing a new IRA distribution form to authorize the change is all that is needed. 

Thinking About Making a Change:  Please contact your planner if you currently have an IRA distribution schedule in place and want to discuss making a change to your Michigan withholding tax.

Note:  You should discuss any tax or legal matters with the appropriate professional.