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BACKGROUND:

403(b)(9) non-electing church plan offers an in-plan annuity. 

In the absence of a Form W-4P, the default withholding for annuities initiated prior to 2022 has been "married with 3 allowances".

It is my understanding that the Plan must notify annuitants annually of their right to elect withholding that differs from this default rate. 

QUESTION:

For these pre-2022 initiated annuities, is the Plan able to continue withholding at the old default rate of "married with 3 allowances" indefinitely, for annuitants that never submit Form W-4P in future years?

  • KaJay changed the title to Default withholding for recipients of periodic payments initiated prior to 2022?

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