Taxes on Your Retirement Benefits - PSERs
Taxes on Your Retirement Benefits - PSERs
Taxes on Your Retirement Benefits - PSERs
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Electing Not to Withhold <str<strong>on</strong>g>Taxes</str<strong>on</strong>g><br />
You may elect to have no taxes<br />
withheld from your m<strong>on</strong>thly check.<br />
Electing that “no taxes” be withheld from<br />
your m<strong>on</strong>thly check does not release you<br />
from your tax liability. You may be<br />
required by the IRS to make quarterly<br />
estimated tax payments to avoid an IRS<br />
imposed penalty.<br />
Incomplete Tax Withholding<br />
Informati<strong>on</strong><br />
If you do not complete Secti<strong>on</strong> 6 of the<br />
PSERS Applicati<strong>on</strong> for <strong>Retirement</strong><br />
(PSRS-8), or the secti<strong>on</strong> is not fully<br />
completed, PSERS will withhold federal<br />
income taxes from your m<strong>on</strong>thly<br />
retirement benefit based <strong>on</strong> the IRS Tax<br />
Tables using “Married with three (3)<br />
exempti<strong>on</strong>s” as required by the IRS.<br />
Changing <strong>Your</strong> Withholding<br />
As a retiree, you may change your<br />
federal withholding rate at anytime. To<br />
change your federal withholding rate,<br />
you must complete and sign IRS Form<br />
W-4P.<br />
<strong>Your</strong> new tax withholding opti<strong>on</strong> will<br />
become effective six to eight weeks<br />
after PSERS receives your new Form<br />
W-4P.<br />
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