Here is my suggestion - if you have a 401(k) or other employer retirement account have it "rolled over" into an IRA. When you take the distribution from your IRA just tell the custodian to not withhold any Federal or State taxes when they mail you the check (with our firm the client specifies if they want withholdings held from their account on the form). Then non-endorse the check via Title 12 and keep for your records. I did this for my entire IRA last year, and while I have not received any response yet to the 2011 filing, I included copies of every redeemed IRA distribution check done throughout 2011 in the filing. Will see if any problems arise.