Tag Archives: withholding

Federal Withholding and Your Pension

Getting hit every year with a larger than expected federal tax bill? Or maybe you received a hefty refund. Either way, it might be time to look at how much federal tax withholding is taken out of your NYSLRS pension. If you’re not sure whether you need to adjust your federal withholding, you can check with your tax preparer or you can use this Internal Revenue Service Withholding Calculator. Remember, this is only for federal income tax. New York State doesn’t tax your NYSLRS pension and we can’t withhold state income taxes.

Understanding Your Federal Withholding

You can adjust the amount we withhold from your retirement benefit at any time. Just follow these step-by-step instructions.

  1. Print our NYSLRS Form W-4P (Withholding Certificate for Pension or Annuity Payments) from our website. (This is a fillable form, so you can type in the information before you print it out.)
  2. Fill in the top of the form with your name, address, Social Security number and NYSLRS ID.
  3. Complete the form.
    • Complete Section 1 if you do not wish to have any federal income tax withheld.
    • Complete Section 2 to have NYSLRS withhold based on current Internal Revenue Service (IRS) tax tables, your marital status and the number of federal allowances (exemptions) you claim. You can use our tax withholding calculator to estimate how much would be withheld from your pension payment every month.
    • Complete Section 3 if you completed Section 2 and also want an additional amount withheld.
  4. If you completed the form by typing in your information, print the form.
  5. Date and sign the form.
  6. Mail your form to:
    NYSLRS
    110 State Street
    Albany, NY 12244-0001

You can sign in to Retirement Online to view your current federal withholding information, including your withholding status, number of exemptions and any additional tax being withheld. You’ll also find your NYSLRS ID on your Retirement Online account page. Visit our Taxes and Your Pension page for more information.