2018 Tax Tables Available
The IRS has issued 2018 tax withholding tables that reflect the changes made by the recently passed federal Tax Cuts and Jobs Act. If you are a PSRS/PEERS benefit recipient, this may change your net benefit payment amount.
If you have federal income taxes withheld from your PSRS/PEERS benefit, the new tax withholding tables may cause your federal withholding amount, and therefore your net benefit amount, to change.
The IRS requires the new tax withholding amounts to be implemented by February 15, 2018.
PSRS/PEERS will mail an individualized letter to all PSRS/PEERS benefit recipients on or near February 20, 2018. This letter will contain the details of any changes to your net monthly benefit amount as a result of the new tax withholding tables.
The new tax withholding amount will be effective with your February 28, 2018 benefit payment.
The 2018 withholding tables were designed to work with the current Form W-4P you have on file with PSRS/PEERS, inclusive of allowances. To help taxpayers determine appropriate withholding, the IRS is revising the tax withholding calculator found at www.irs.gov. The IRS anticipates this calculator should be available by the end of February. Taxpayers are encouraged to use the calculator to adjust their withholding once it is released.
If, as a result of these changes, you wish to change your tax withholding amount, you can do so by logging in to PSRS/PEERS Web Member Services at www.psrs-peers.org, or by using the Monthly Tax Withholding Authorization form available on our website or from our office. Changes received by March 21 will become effective starting with your March benefit payment.
If you need assistance determining your proper tax withholding amount under the new legislation, please contact your tax advisor or the IRS at (800) 829-1040.