43-406. Extension of withholding to premature withdrawals of state and local government retirement contributions
106 words·~1 min read·
/az/title-43/43-406A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
For the purposes of this title and except for eligible rollover distributions transferred to an eligible retirement plan pursuant to section 401(a)(31) of the internal revenue code, amounts withdrawn from the state retirement system, the elected officials' retirement plan or a county or city retirement plan by an employee upon termination of employment prior to retirement shall be treated as if the withdrawn amounts are payment of wages by an employer to an employee and shall be subject to withholding. The amount withheld by the retirement plan or system at the time of withdrawal shall be equal to five per cent of the total amount withdrawn.