Tag Archives: W-4P

Your Checklist to Apply for Retirement

After months of planning and preparation, you’re ready to apply for retirement. To get your NYSLRS  pension benefit, you need to send in an application. Let’s look at what you should include with the form to help make the retirement process go more smoothly.

Filling Out the Retirement Application

Unless you’re filing for a disability retirement, you’ll need to fill out the Application for Service Retirement (RS6037). As you fill out the form, make sure you:

  • Know your registration number. You can find it on your most recent Member Annual Statement or retirement estimate.
  • Know your past employment. To help ensure you receive the proper credit for your public service, please list your public employment history. Include any military service and memberships in other New York public retirement systems.
  • Include your beneficiary’s information. You won’t make an official beneficiary designation with this form, but including these details will help us give you specific amounts for the pension payment options  that offer a lifetime benefit for a beneficiary.
  • See a notary. The form must be filled out completely and signed by a notary public.

Proof of Birth

Make sure we have proof of your birth date. You can send it with your retirement application or before or after, but we cannot pay pension benefits without it. We accept photocopies of the following as proof:

Other Forms

Option Election

You’ll need to choose your pension payment option, or how you want your pension paid. Option election forms are available on our website, but we will also send you a form after we process your application. If you choose an option that provides your beneficiary a lifetime pension benefit when you die, you must provide proof of your beneficiary’s birth date.

Federal Income Tax Withholding

Your NYSLRS pension isn’t subject to New York State income tax, but it is subject to federal tax. You can fill out a W-4P form  any time to tell us how much to withhold from your monthly benefit. We don’t withhold income tax for other states. Visit the Retired Public Employees Association’s website to see whether your benefit will be taxed in another state.

Direct Deposit

Direct deposit is the fastest and most secure way to receive your pension benefits. You can enroll in our direct deposit program when you file for retirement. Just fill out a Direct Deposit Enrollment Application (RS6370), and return it to us.

Domestic Relations Order

If an ex-spouse is entitled to part of your pension, you should send us a copy of your domestic relations order (DRO) as soon as possible. The DRO gives us specific instructions on how to divide your benefits. We cannot finalize your pension until we review it and calculate the court-mandated distribution of your benefit. For more detailed information, please read our Guide to Domestic Relations Orders.

Questions

If you have other questions about applying for retirement, read our publication, Life Changes: How Do I Prepare to Retire? or contact us.

Federal Withholding and Your Pension

Federal Withholding and your Pension

Getting hit every year with a larger than expected federal tax bill? You may want to increase the federal withholding from your NYSLRS pension. Or maybe you’re getting a hefty tax refund every year. If you have too much withheld, you’re basically giving the government an interest-free loan. Maybe you need to adjust your withholding due to recent changes to the tax law for 2018 (if you’re not sure, you can check with your tax preparer, or you can use this Internal Revenue Service Withholding Calculator.)

But whatever your situation, 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, last four digits of your Social Security number and Registration number (if known).
  3. Complete one of the three numbered sections. (Do not complete more than one section.)
    • Complete Section 1 if you do not wish to have any federal income tax withheld.
    • Complete Section 2 if you want us to withhold based on current Internal Revenue Service (IRS) tax tables, your marital status and the number of federal exemptions you claim. To see how much that would be, use our tax withholding calculator. You can also have an additional amount withheld.
    • Complete Section 3 if you know how much you want withheld. Remember, the amount you should include here is the total amount you want withheld from your pension, not the amount you want to add or subtract from your current withholding.
  4. Print the completed form.
  5. Date and sign the form.
  6. Mail or fax your form to NYSLRS. Our address and fax number are at the top of the W-4P form.

Visit our website for other resources, including an interactive Understanding your W-4P Form tutorial, and more information about Taxes and Your Pension.

Need to Know Tax Information for NYSLRS Retirees

If you haven’t filed your tax returns, here’s some useful information that may help you:

The W-4P Form

Your retirement benefit from the New York State & Local Retirement System (NYSLRS) isn’t subject to New York State income tax, but it is subject to federal income tax. The W-4P form determines withholdings from your pension payments.

NYSLRS takes care of your estimated tax payment requirement by withholding money from your pension based on your W-4P. If you’re receiving a NYSLRS pension, you need to file a W-4P to determine how much to withhold.

Significance of the W-4P

If you don’t have enough withheld from your retirement income during the year, you could find yourself owing the Internal Revenue Service (IRS) extra in interest and penalties when you file your tax return.

Changing Your W-4P

You can submit a new W-4P form whenever you want as your life circumstances change. Don’t know how much you want withheld from your pension? Our Withholding Tax Calculator can help you figure out the amount. If you need to update your withholding status, you can send us an updated W-4P form. Make sure you check out our W-4P tutorial if you have questions about filling out the form.

Other Tax Information Resources

If you have questions about your 1099-R tax form – the form that reports your pension distributions from us – our 1099-R tutorial can help.

If you are a retiree receiving regular monthly pension checks from NYSLRS, you may also want to read our Frequently Asked Questions dealing with taxes and your retirement benefit.

And if you ever have any other retirement-related questions that we can assist you with, please don’t hesitate to contact us via this email form: https://nysosc9.osc.state.ny.us/product/ccsub.nsf/fsWeb?OpenFrameset. One of our representatives will respond back to you within 3 to 5 business days.

Countdown to Retirement: What to Do 1–3 Months before Your Retirement Date

Our Countdown to Retirement series highlights the steps you need to take as you approach your retirement date. This post focuses on the final three months.

Filing for Retirement

You must file your Application for Service Retirement (RS6037) with us 15–90 days before you plan to retire. You can get the form from our website or our consultation sites. Make sure to provide all the requested information and have it notarized.

If you send the form by “Certified Mail — Return Receipt Requested,” we will consider your application filed on the date it was mailed. Please don’t give your application to your employer; send it directly to NYSLRS.

Next Steps

Once we receive your application, we’ll mail you a confirmation letter. If you’ve received an estimate from us within the past 18 months, we will include three forms with the letter:

If you haven’t previously received an estimate, we will send you just the W-4P and Direct Deposit Enrollment forms, and we’ll begin processing your estimate. Once your estimate is complete, we will send it to you with the Option Election form.

Choosing Your Pension Payment Option

Select a payment option based on your most recent estimate, which shows what your pension benefit could be based on the pension payment options available to you. All of the options provide a monthly benefit for life, and some provide payments to a designated beneficiary when you die. You must file this form by the last day of the month in which you retire (unless otherwise notified).

Make Sure You’re Prepared

As your retirement date draws near, it’s important to understand the retirement process. Think about scheduling a consultation at one of our offices to file for retirement. Our information representatives can answer any questions to you have, help you complete the paperwork and notarize your retirement application. You can also contact us, if you have questions.