a taxpayer transferred 20000 from his qualified retirement p

a taxpayer transferred $20,000 from his qualified retirement plan to another qualified plan by having the trustee of the old plan transfer the funds directly to the trustee of the new plan. How much of the transferred amount must be withheld for income taxes? A) $0 B) $4,000 C) $6,000 D) $6,200

Solution

Ans: $0

Explanation:

It is Trustee-to-trustee transfer. So, \"No\" taxes will be withheld from the transfer amount.