They are withholding 30%.
You will get at least some (if not all) of that back when you file your tax return in April.
In your case I would take the money as you need cash to live on. If you did not have cash needs, the tax deferred option would be a good one.
The company I work for has just informed me that I have $258 dollars in dividends from last year. I don't make a lot of money (14/hr) and I have the option of taking the money (which will be taxed and reduced to $180) or deferring it to the ESOP cash dividend subaccount through T. Rowe Price.
I am currently a graduate student and live at home because I can't afford to rent anywhere in DC on 14 dollars an hour. But this job gives me flexibility to work and go to school (internship now). In other words, I need any little bit of money I can get my hands on just to live. Should I just take the $180? I'm thinking yes, but I thought I'd try to get a second opinion.
