When you withdraw money from your IRA or employer-sponsored retirement plan, your state may require you to have income tax withheld from your distribution.
Your withholding is a pre-payment of your state income tax that serves as a credit toward your current-year state income tax liability.
Your state withholding may be affected by the following criteria:
Each state’s requirements are different. You should consult your tax advisor or financial professional to understand your state’s withholding requirements.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.