Changes go into effect January 1, 2023
As mentioned in the Fall 2022 PERA Retiree Report, the IRS has new forms for electing or changing tax withholdings.
- If you are a PERA benefit recipient currently receiving a monthly benefit from PERA and you wish to make changes to your federal tax withholding, you will need to complete Form W-4P (Withholding Certificate for Periodic Pension or Annuity Payments). This is the only form necessary to update or add federal withholding to your monthly benefit(s).
- If you are refunding your own PERA account, or are the named beneficiary of a deceased PERA member’s account and you wish to make a change for any lump-sum distribution you will be paid after January 1, 2023, you need to complete Form W-4R (Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions). This form is only required if you wish to change the default withholding on a one-time distribution.
The PERA Withholding Preference Form will no longer be accepted after December 15, 2022. Any forms submitted after December 15 will be applicable to payments made in January 2023.
PERA retirees and benefit recipients who are currently receiving ongoing PERA benefit payments and who do not wish to make changes to their federal tax withholding elections are not required to file a new form, but PERA recommends that you complete the new Form W-4P for 2023 to ensure you have the appropriate tax amount withheld.
If you live in Colorado and wish to change your state tax withholding election after the new Form W-4P is implemented by PERA, you will need to submit a Colorado State Withholding Form.
Please note that PERA cannot provide tax advice, including advice about how to complete these forms. If you have questions about your particular situation, please contact a tax or legal adviser.
How to Check Your Withholdings or Make Changes
Log in to your PERA account at copera.org and select the “Forms” menu to access “View all Forms.” From there, select the “Tax Withholding” menu, which will take you to the electronic form, and follow the prompts to complete and submit. If you have multiple accounts with PERA, you will need to select each account separately from the "Account Select" drop-down menu to make the changes for each.
Summary of Changes for IRS Form W-4P
- You may now select one of the following marital status options:
- Single or Married filing separately
- Married filing jointly or Qualifying widow(er)
- Head of household
- Reflects income from multiple jobs/pensions/annuities
- Claim dependent and other credits
- Default withholding is now Single with no adjustments (changed from Married with three (3) allowances)