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Annual Notice of Right to Elect or Revoke Federal Tax Withholding

To all ASRS Retirees:

Periodic pension payments will be subject to federal income tax withholding if the taxable portion of the total annual payments equals or exceeds $ 20,640 ($1,720 per month) unless you elect not to have withholding apply. In the absence of an election, your withholding will automatically be calculated in the same manner as withholding from wages.

IF YOU DO NOT WISH TO MAKE AN ELECTION OR TO CHANGE PRIOR ELECTION, NO ACTION IS NECESSARY.

If you wish to make or change/revoke an election, you may request an election form by writing to the return address on your check stub or advice of deposit. Please provide your name, address and company you retired from, or company Account ID, if known. You can also make or revoke an election by completing Form W4-P, which is available at your local IRS office, library or on the IRS website.

You may revoke an election at any time. Your withholding election will remain in effect until revoked. Any election not to have withholding apply is prospective only and any election made after a payment is not an election with respect to that payment.  If you wish to make or change/revoke an election, you may request an election form by writing to the return address on your check stub or advice of deposit.

If you elect not to have withholding applied to your periodic pension payments, or if you do not have enough federal income tax withheld from such payments, you may be responsible for payments of estimated tax.  You may also incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient.

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