IRS forms W-4R and W-4P to be completed and submitted with distribution requests
W-4R required when requesting a distribution (Deferred and Fixed Annuities)
Form W-4R (“Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions”) is now required by the IRS to calculate/facilitate withholding in the correct amount of federal income tax associated with
- a nonperiodic payment from
- an individual retirement arrangement (IRA)
- a non-qualified annuity or life insurance distribution
- an eligible rollover distribution from a qualified retirement plan (QRP).
W-4P required when electing SPIA, Annuitization, Death Payouts, etc.
Form W-4P (“Withholding Certificate for Periodic Pension or Annuity Payments”) was recently redesigned by IRS to replace the prior Form W-4. This form is required by the IRS to calculate/facilitate withholding in the correct amount of federal income tax from
- a SEPP (substantially equal periodic payment).