CTPF withholds federal income tax from pension payments according to Internal Revenue Service (IRS) regulations. The IRS requires that you complete Form W-4P: Withholding Certificate for Pension Payments, and maintain it on file with CTPF.

To withhold federal income tax, you must designate the number of withholding allowances and provide your marital status by completing the appropriate boxes. You cannot designate a specific dollar amount to be withheld. You may, however, choose to withhold an additional amount in addition to the IRS tax withholding tables. If you choose not to have federal tax withheld, check the appropriate box on the form.

If you do not have Form W-4P on file with CTPF, the IRS requires that we withhold at the married rate with three allowances. You can change the default withholding amount by completing CTPF Form 420 Form W4-P Tax Withholding.

Federal Tax Withholding Tables

CTPF uses the withholding tables found in section 5 of this IRS publication to determine your tax withholding.  Refer to the monthly tables to determine the withholding amounts for your pension payment. The publication includes a calculation worksheet that can be used to determine tax withholding per payment.  

CTPF does not provide tax or financial advice. Consult your tax or financial advisor if you are not sure how much federal tax to withhold from your pension payment.