Pension specific withholding taxes?

[Guest new2taxes]

I'm researching options to replace the tax calculation module in my existing pension distribution system. The best fit, so far, uses payroll tax tables and rules. Do pension income tax withholding rules differ greatly from payroll tax withholding rules? Where would I find the differences documented? Would anyone recommend a pension withholding specific tax calculation system? Is using payroll tax rules an acceptable practice? Thanks!

[david rigby]

It is my understanding that there is no separate procedure/table for withholding, at least for federal tax purposes. See Form W-4P.

Two primary differences between W-4 and W-4P: (a) a pensioner can elect zero withholding on the W-4P, and (b) the default (if no W-4P or other withholding election is submitted) is to assume the pensioner is Married with 3 Exemptions, and then use the regular withholding table/formula.

Clarifying edit: (a) and (b) above apply to periodic payments, not to payments eligible for rollover.