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New Tax law and withholding on periodic payments


Guest David G

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Guest David G

Does the recent revision of wage withholding tables by the IRS in connection with the new tax law and the change in rates impact withholding on periodic payments by qualified plans and 457 plans?

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Hmmm. Not sure, but I think that the general rule is that withholding from periodic pension payments is based on the same table as for wages, whatever those tables might be.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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Guest David G

Incidentally, Pub 15-T which was recently released by the IRS, states that the new wage withholding tables are to be used as soon possible for wages paid after 6-30-01 and as soon as possible for supplemental wage payments made after 08-6-01.

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  • 3 weeks later...

If the distributee has not filed a W-4P with the payer, the payer will withhold based on married with 3 withholding allowances.

A withholding allowance is worth $723.00. The value of the allowances is subtracted from the gross periodic payment with the remainder subject to withholding.

Best wishes,

Joel L. Frank

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