This w-4p form seems to be designed for income received monthly. I have an IRA and a 401K that I take my RMDs at the end of the year. I use a homegrown spread sheet to estimate my income and calculate my tax liability because I also have income from 1099-INTs, which vary depending on interest rates. In prior years I could specify a dollar amount for withholding on my RMD withdrawal in December to cover my tax liability. How do i use the w-4p to allow me to specify a specific amount or percentage on my one time RMD withdrawal?
You would use IRS Form W-4R, not Form W-4P for nonperiodic payments from an IRA or employer retirement plan, such as RMDs. Here are links to resources on Form W-4R: IRS Form W-4R, Withholding Certificate for Nonperiodic Payments and Eligible Rollovers Article: www.teachmepersonalfinance.com/irs-form-w-4r-instructions/ Video: ruclips.net/video/Aa_n50wOA_I/видео.html
Thank you for the video. If a specified point I start getting paid by my former employer the distributions from a Deferred Compensation Plan (DCP), do I have to complete a W-4P or my employer will just withhold a default amount of taxes that is required by the IRS? If my former employer withholds FICA taxes from the DCP distributions, when FICA was already withheld at the time that I made the contributions, and they refuse to return to me that FICA (double FICA taxation), is it form 843 that I have to submit to the IRS to get those FICA taxes returned to me? Thank you!
I'd have to know more about your DCP to give specific information. For example, nonqualified plans are treated differently from qualified plans. Generally, Below is a link to an IRS page with more information on tax withholding situations involving DCPs. www.irs.gov/individuals/international-taxpayers/pensions-and-annuity-withholding Also, FICA withholding may apply to some contributions, but not others. I would doublecheck this. Here is an IRS reference: www.irs.gov/retirement-plans/retirement-plan-faqs-regarding-contributions-are-retirement-plan-contributions-subject-to-withholding-for-fica-medicare-or-federal-income-tax You can use IRS Form 843 to request the adjustment, but only if the employer will not do so for you (you must ask first). IRS Form 843, Claim for Refund and Request for Abatement Article: www.teachmepersonalfinance.com/irs-form-843-instructions/ Video: ruclips.net/video/beGwgBS1YYI/видео.html
Thanks much. very helpful. But I am still confused about whether I need to report my wages on this form as I have more than one w4p to fill out. I retired in May and my total was 90k at that point. Taxes were already taken out for that. I started social security payments which will come to about 19k for this year. I filed a W4v form which is already taking out 12% in withholding for that. I now am applying for 2 different pension distributions both of which won’t start payments until Dec of this year. Do I need to list my job wages on both W4p forms? I made the mistake of listing my SS benefits as income on one of the W4Ps. I am already overpaid in taxes for this year.
If you're overpaid in taxes for the year, then I wouldn't spend too much time trying to fix them. You can submit a Form W-4P with no withholding by writing “No Withholding” on Form W-4P in the space below Step 4(c). Then, complete Steps 1a, 1b, and 5. I would be sure to re-evaluate all of your tax withholdings for 2025 with updated income figures. If you have multiple W-4P forms, then I would pay particular attention to how I'd complete Step 2 for the highest paying pensions. And I would be sure to re-evaluate the tax withholdings using the IRS website or the Form 1040-ES worksheet, probably in the February/March timeframe.
This w-4p form seems to be designed for income received monthly. I have an IRA and a 401K that I take my RMDs at the end of the year. I use a homegrown spread sheet to estimate my income and calculate my tax liability because I also have income from 1099-INTs, which vary depending on interest rates. In prior years I could specify a dollar amount for withholding on my RMD withdrawal in December to cover my tax liability. How do i use the w-4p to allow me to specify a specific amount or percentage on my one time RMD withdrawal?
You would use IRS Form W-4R, not Form W-4P for nonperiodic payments from an IRA or employer retirement plan, such as RMDs. Here are links to resources on Form W-4R:
IRS Form W-4R, Withholding Certificate for Nonperiodic Payments and Eligible Rollovers
Article: www.teachmepersonalfinance.com/irs-form-w-4r-instructions/
Video: ruclips.net/video/Aa_n50wOA_I/видео.html
Thank you for the video. If a specified point I start getting paid by my former employer the distributions from a Deferred Compensation Plan (DCP), do I have to complete a W-4P or my employer will just withhold a default amount of taxes that is required by the IRS?
If my former employer withholds FICA taxes from the DCP distributions, when FICA was already withheld at the time that I made the contributions, and they refuse to return to me that FICA (double FICA taxation), is it form 843 that I have to submit to the IRS to get those FICA taxes returned to me? Thank you!
I'd have to know more about your DCP to give specific information. For example, nonqualified plans are treated differently from qualified plans. Generally,
Below is a link to an IRS page with more information on tax withholding situations involving DCPs.
www.irs.gov/individuals/international-taxpayers/pensions-and-annuity-withholding
Also, FICA withholding may apply to some contributions, but not others. I would doublecheck this. Here is an IRS reference:
www.irs.gov/retirement-plans/retirement-plan-faqs-regarding-contributions-are-retirement-plan-contributions-subject-to-withholding-for-fica-medicare-or-federal-income-tax
You can use IRS Form 843 to request the adjustment, but only if the employer will not do so for you (you must ask first).
IRS Form 843, Claim for Refund and Request for Abatement
Article: www.teachmepersonalfinance.com/irs-form-843-instructions/
Video: ruclips.net/video/beGwgBS1YYI/видео.html
Thanks much. very helpful. But I am still confused about whether I need to report my wages on this form as I have more than one w4p to fill out. I retired in May and my total was 90k at that point. Taxes were already taken out for that. I started social security payments which will come to about 19k for this year. I filed a W4v form which is already taking out 12% in withholding for that. I now am applying for 2 different pension distributions both of which won’t start payments until Dec of this year. Do I need to list my job wages on both W4p forms? I made the mistake of listing my SS benefits as income on one of the W4Ps. I am already overpaid in taxes for this year.
If you're overpaid in taxes for the year, then I wouldn't spend too much time trying to fix them. You can submit a Form W-4P with no withholding by writing “No Withholding” on Form W-4P in the space below Step 4(c). Then, complete Steps 1a, 1b, and 5.
I would be sure to re-evaluate all of your tax withholdings for 2025 with updated income figures. If you have multiple W-4P forms, then I would pay particular attention to how I'd complete Step 2 for the highest paying pensions. And I would be sure to re-evaluate the tax withholdings using the IRS website or the Form 1040-ES worksheet, probably in the February/March timeframe.
Only the Government could make something so easy this confusing. Just unbelievable..