SPTRFA will withhold Federal and Minnesota taxes from your retirement benefit. We do not withhold for any other state.
If you wish to update your tax withholding elections, complete and submit a Form W-4P IRS Withholding Certificate for Periodic Pension or Annuity Payments, or Form W-4MNP Minnesota Withholding Certificate for Pension and Annuity Payments.
Effective January 1, 2023, SPTRFA has discontinued the use of SPTRFA Federal and State Tax Withholding Forms.
Tax Withholding Forms:
Retirement benefits are subject to state (dependent on the state that the retiree resides) and federal income tax and can include both a tax-free amount and a taxable amount. Member contributions made to SPTRFA before January 1, 1983, were taxed (unsheltered) and are not subject to tax in retirement. However, member contributions made on and after that date were not taxed (sheltered) and become taxable in retirement.
The following is important information about your SPTRFA 1099-R for the tax year 2022:
Your SPTRFA 2022 1099-R will be postmarked before January 31, 2023. The SPTRFA sends a 1099-R Form in January for the prior year’s benefits received. Similar to a W-2 form from an employer, the 1099-R reports your annual benefit payments for the previous year.