I use Schwab and I did a backdoor roth conversion last year without any issues. I did not withhold any taxes. Well I made my contribution to my traditional IRA this year and the funds just settled. I went to transfer it to my Roth IRA and it says that now there is a 1% mandatory state income tax withholding in California. I even made sure my default elections are 0% withholding. I guess there’s no way around it, then?
u/Lazy_Grass_4416 — 8 days ago