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W5) Is there tax withholding on a CARES Act TDA withdrawal?

Yes. 10% of a CARES Act TDA withdrawal will be withheld for federal tax unless the member elects a different withholding percentage on the withdrawal application. Amounts withheld will be credited to a member's taxes for the year of distribution.

Note: The CARES Act waives the 10% early withdrawal tax penalty that would otherwise apply to withdrawals taken by members under age 59½.