This January APERS will be mailing IRS Form 1099-R, which reports taxable income, to members receiving payments. Retired members will also have a new form to change their withholding.
IRS Form 1099-R: Every member who received a taxable payment from the system in 2022 will receive form 1099-R. It will indicate the amount of taxable income (if any) the member received from us during calendar 2022. Members will need this document to complete their state and federal income tax returns. Members should receive the form by early February. If you have not received yours by February 15 or you wish to order a duplicate copy, you may request a duplicate 1099-R. Please do not contact us to order a duplicate prior to February 15. Note that you can also access the form online after February 1 through our member self-service (MSS) portal.
IRS Form W-4P: The monthly annuity payments that we provide to retirees are subject to federal income tax. When members apply for retirement, they complete a form to have us withhold the correct amount of tax from their annuity payments. The IRS recently redesigned Form W-4P, Withholding Certificate for Periodic Pension or Annuity Payments, and we are required to begin providing this new form on January 1, 2023. You are not required to take any action and your existing tax elections will remain the same. If your tax situation changes in years to come and you wish to adjust your withholding, you can contact us to request the new form, or you can use the online form available on our MSS portal.
For more information on federal tax withholding, see the IRS’s Pub. 505, Tax Withholding and Estimate Tax or consult a tax professional