Most NYSLRS pensions are subject to federal income tax. If your last federal tax bill or return was not what you expected, Retirement Online makes it fast and convenient to update your federal tax withholding.
If you don’t have an account or for help signing in to an existing account, check out our Retirement Online tools and tips for step-by-step instructions to register, reset your password, unlock your account and more.
Understanding Your Federal Tax Withholding
NYSLRS is required to withhold federal income tax from your pension benefit at the default withholding status of “single with no adjustments” unless you inform us otherwise. The amount withheld is based on the information you provide to us on a W-4P Form (Withholding Certificate for Pension or Annuity Payments).
Note: The Internal Revenue Service (IRS) revised its W-4P Form, which no longer allows tax filers to adjust their withholding by electing a specific number of allowances. To comply with IRS requirements, NYSLRS updated its tax withholding form accordingly. You do not need to submit a new W-4P Form to NYSLRS unless you want to change the amount withheld for federal income tax.
Effective January 1, 2023, NYSLRS does not withhold federal income tax from pension benefits that are not subject to tax reporting.
Estimate Your Federal Tax Withholding
The IRS has a new Tax Withholding Estimator which may help you estimate the federal income tax you want withheld from your pension. When using the tool, be sure to have your most recent tax return, pension pay stubs (available in Retirement Online) and other income information—your results will be based on the information you enter.
Use Retirement Online to Update Your Withholding
Retirement Online is the fastest and most convenient way to complete the W-4P Form and update your federal tax withholding for your NYSLRS pension.
- Sign in to Retirement Online.
- Look under My Account Summary.
- Click Update My W-4P Tax Information button.
- Follow steps to update your withholding.
If you update your federal tax withholding online by the middle of the month, your changes will generally be applied to that month’s pension payment.
For more information, including instructions for updating your withholding, visit our Taxes and Your Pension page.
If You Need Help
The NYSLRS form is based on the IRS form. If you need assistance completing the form:
- Read the IRS Form W-4P for detailed instructions starting on page 2.
- Visit the IRS About Form W-4P page for more information.
- Visit the IRS Let Us Help You page for the IRS phone numbers and a list of online tools and resources.
If you’re not sure whether you need to adjust your federal tax withholding or if you have other tax questions, you may want to consult a tax preparer.