When you initiate a distribution from your IRA, you will automatically be prompted to choose a state and/or federal tax withholding amount. All customers will be defaulted to 10% federal withholding, but can select 0% or any other value between 10% and 100%.
Betterment is not a tax advisor, and the information provided here should not be construed as tax advice. It should only be used for informational purposes. Please consult a qualified tax professional to determine the rules that apply to your individual tax situation.