ARS § 43-406

43-406 - Extension of withholding to premature withdrawals of state and local government retirement contributions 43-406 . Extension of withholding to premature withdrawals of state and local government retirement contributions For the purposes of this title and except for eligible rollover distributions transferred to an eligible retirement plan pursuant to section 401(a)(31) of the internal revenue code, amounts withdrawn from the state retirement system, the elected officials' retirement plan or a county or city retirement plan by an employee upon termination of employment prior to retirement shall be treated as if the withdrawn amounts are payment of wages by an employer to an employee and shall be subject to withholding. The amount withheld by the retirement plan or system at the time of withdrawal shall be equal to five per cent of the total amount withdrawn.