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Withholding Certificate for Annuities and Periodic Payments

IRS Form W-4P

This form is to be used for monthly annuities and periodic payments having a term of ten years or greater. All other payment options have mandatory 20% tax withholding.

For periodic payments, the Internal Revenue Service requires that the payments have a minimum duration of ten years in order to have federal tax withholding based on the W-4P. For participants having selected the periodic payment option, the completion of Form W-4P acts as the participant's acknowledgment that they intend to receive payments over a period of ten years or greater.