Which of the following would result in a 20% withholding if rolled over?

The correct response centers on the rules surrounding the distribution and rollover of funds from retirement plans. When rolling over funds from one qualified retirement plan to another, there is generally no withholding tax applied. However, in the scenario described in the question, the correct choice does not align with this general principle regarding rollovers.

The focus should instead be on the cash withdrawal from the plan, which typically does incur a withholding requirement of 20%. When a participant takes a cash distribution from a qualified retirement plan (for example, a 401(k)), the IRS mandates that the plan sponsor withhold 20% of the distribution for federal income taxes. This withholding is applicable unless the participant directly rolls over the distribution to another plan or an IRA.

In contrast, transferring between IRAs or rolling over funds from one qualified plan to another does not trigger withholding as long as the transaction is executed as a direct rollover. Furthermore, moving funds from a qualified plan to a non-qualified plan suggests a completely different treatment that may also attract tax implications but not necessarily the 20% withholding specified.

Therefore, among the options presented, the situation most likely to result in a required 20% withholding involves a cash withdrawal from the plan.