Payer ( Payor)

Definition

The party responsible for processing distributions from retirement plans and performing any required tax-withholding.

Referring Cite

IRC § 3405(e) , Temp. Treas. Reg. §35.3405-1T, IRS Instructions for filing form 1099-R

Additional Helpful Information

The plan administrator may pass on the responsibly of paying and withholding  to another party, such as a custodian or other financial institution. Treas. Reg. §31.3405(c)-1, Q&A-4, -5.

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