Connecticut Annuity Owners Subject to State-Income-Tax Withholding on 2018 Distributions
Connecticut Annuity Owners Subject to State-Income-Tax Withholding on 2018 Distributions
A new Connecticut Income Tax Regulation (CT H 7312) will go into effect beginning tax-year 2018 which may impact distributions from EquiTrust annuity contracts owned by Connecticut residents. The new regulation requires EquiTrust to withhold Connecticut-state income taxes for distributions taken by Connecticut residents.
To determine the correct withholding is applied to distributions, a 2018 Form CT-W4P will be mailed to Connecticut annuity owners taking scheduled distributions in 2018.
Any previously submitted Form CT-W4P withholding request will not apply beginning 2018; the Form must be resubmitted for 2018.
The Form CT-W4P must be mailed or faxed to EquiTrust. If the completed form is not received, EquiTrust is required to apply the Connecticut income-tax withholding rate of 6.99% to 2018 distributions.