At the end of 2021, the IRS released new federal tax withholding
election Form W-4P (for periodic payments) and Form W-4R (for
nonperiodic payments and eligible rollover distributions) for use
in 2022. At that time, the IRS also announced that the 2021 version
of Form W-4P could continue to be used through the end of 2022, to
give retirement systems more time to implement the new withholding
process for new payees and other payees who complete a 2022 Form
W-4P or Form W-4R. For more detail on these changes, see our
January 21, 2022 E-Alert: IRS Finalizes 2022 Federal Tax Withholding
Guidance and Forms.
As we reach the halfway point of 2022, it is a good time for
retirement systems to be sure that they are on track to implement
the new federal tax withholding election forms no later than
January 1, 2023. We do not expect that the IRS will provide any
additional delay for using the new forms, so retirement systems
should be working toward testing and implementation of the new
system.
As we have worked with many of our clients through this process, we
recognize the importance of having a plan in place to make all
necessary decisions, as well as providing appropriate staff
training. Please contact Robert L. Gauss, Audra Ferguson-Allen, Lisa Harrison, Lindsay Knowles, or the Ice Miller Workplace Solutions lawyer with
whom you work for more information.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
