If you haven’t heard, effective January 1, 2023, the Internal Revenue Service (IRS) has revised the forms and instructions to determine federal withholding for pension and annuity payments. With this change, the IRS has split the prior withholding certificate into two forms. In preparation, Athene has updated its process and procedures to comply with IRS requirements.
- Form W-4P (Withholding Certificate for Periodic Pension or Annuity Payments): Form W-4P is used to determine federal tax withholding for periodic payments from annuities, such as distributions from SPIAs, annuitizations and substantially equal periodic payments under Secs. 72(t) and 72(q). The IRS changed the default withholding from married with three allowances to single and no allowances. Access additional information about Form W-4P from the IRS.
- Form W-4R (Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions): Form W-4R is used for nonperiodic payments from annuities, such as refunds prior to issue, lump sum or other onetime distributions, full and partial surrenders, income rider payments, and systematic withdrawals, including required minimum distributions. The IRS requires default withholding of 10% from these types of distributions unless the individual elects no withholding or a different federal tax withholding. Access additional information about Form W-4R from the IRS.
Get the forms here:
IRS FORM W4P IRS FORM W4R