IRS Forms W-4P and W-4R Now Included in NRECA Retirement Withdrawal and Distribution Forms

Effective January 1, 2023, to comply with recent regulatory guidance, withdrawal and distribution forms developed by NRECA for the 401(k) Pension Plan and Retirement Security Plan must include IRS Forms W-4P and/or W-4R, based on the type of transaction being requested.

These IRS forms are used by participants to indicate the amount of federal tax withholding from their withdrawal or distribution payment(s).

NRECA forms include sections where participants can provide instructions for federal and state income tax withholding; however, regulatory guidance indicates the federal forms used for federal tax withholding must also be included.

Participants may use Form W-4R to indicate the amount of federal income tax to be withheld from their 401(k) Pension Plan account payment or withdrawal. If the participant is taking a single cash payment from their Retirement Security Plan benefit, they may also use this form.

Participants may use Form W-4P to indicate the amount of federal income tax to be withheld if they are initiating annuity benefit payments from their Retirement Security Plan.

A participant does not need to complete the tax withholding information on both NRECA and IRS forms. They can complete this information on either the NRECA form or the federal form.

A notice explaining the federal forms (and how to complete the distribution paperwork) will be included on the relevant NRECA forms.

Participants with questions should call NRECA’s Retirement Plan Distributions team for assistance at 866.673.2299, option 8.