Most retirement payments are subject to federal and state taxes. You must complete the income tax withholding information on your retirement application when you apply for your benefit. Your application will include an IRS W-4P worksheet to help you determine the amount of your federal tax withholding.
Print Your Tax Withholding Form
Use ETF’s online Income Tax Withholding Calculator to update how much income tax is taken out of your annuity payments. After you have entered the information, print your tax withholding election form to submit to ETF. Go to the Substitute W-4P Tax Withholding Certificate for Pension or Annuity Payments page to submit the form electronically.
Federal Income Tax
If you do not fill out a tax withholding form, federal law requires ETF to withhold federal taxes as if you are married with three exemptions. U.S. citizens living abroad cannot choose “No Withholding”; federal tax withholding is mandatory. Note: Federal withholding tables are subject to changes by the Internal Revenue Service. Consult with your professional tax advisor or visit irs.gov for the latest information.
State Income Tax
Wisconsin does not require mandatory tax withholding and ETF does not withhold state taxes for members living in other states. If you do not specify how you want Wisconsin taxes withheld, ETF will not withhold anything. However,
- if you choose to withhold Wisconsin tax according to the tax tables, your withholding amount will automatically adjust when the tax tables change or your monthly benefit payment changes.
- if you choose to a withhold a specific amount, it will not change automatically. You will need to complete a Substitute W-4P Tax Withholding Certificate for Pension or Annuity Payments (ET-4310) form and return it to ETF.