Save time with our cheat sheets, fact sheets, checklists & books!

February 16, 2009

Nonperiodic payment (nonperiodic distribution)

Your Guide



Distributions from a retirement account that are payable on demand , i.e. they can typically be requested in any amount at anytime.

The tax  code defines nonperiodic distributions as “any designated distribution which is not a periodic payment”.

Referring Cite

IRC § 3405(e)(3), IRS Form W4-P

Additional Helpful Information

  • The withholding rate for a nonperiodic payment is 10%, providing the amount is not rollover eligible. IRC §3405(b)(1). If the amount is rollover-eligible, and is not processed as a direct rollover, the withholding is 20%

Related Articles Tutorial or Other Content

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.


Keep Learning


Definition A deduction is a Tax write-off which is allowed for contributions to traditional IRAs or employer sponsored plans. Individuals who are active participants are

Annual Addition Limit

Definition The annual Addition limit is the maximum amount that may be added to a defined contribution plan on behalf of a participant for any

SIMPLE 401(k) Plan

Definition A SIMPLE 401(k) plan is a 401(k) plan  established by a small business for it’s employees. Earnings accrue on a tax-deferred basis and distributions

Salary Deferral Contribution

Definition A contribution made pursuant to a participant’s election to have a portion of his/her salary/wages  contributed to his/ her employer sponsored plan  rather than

Be among the first to know when

IRA Rules