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<<<We early withdrew our money from an IRA to invest in stocks. The IRA was with Merrill Lynch . . .>

If a direct IRA trustee to IRA trustee transfer was not used, ML probably withheld 20% of the balance for income taxes.>>[snip]

20% withholding does not apply to distributions from IRAs, only from employer plans if there is no direct rollover setup.

KAT in Chicagoland
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