A portion of your pension benefit is subject to federal and state income taxes. At your retirement, SERS determined the amount of the benefit that is taxable and the amount that is non-taxable.
By January 31 of each year, SERS sends you a tax form (IRS Form 1099-R) for the previous calendar year, which provides information on the pension amounts you received for the year, the amount of taxes withheld, and other tax information.
With the Form 1099-R, SERS sends the Recipient Income Tax Information handout, which explains the form and provides other detailed federal and state tax information.
If you elect to receive a Partial Lump Sum Option (PLOP) at retirement in addition to your monthly benefit, this amount may be subject to federal and state income taxes for the year received, depending on how the benefit is paid. SERS sends an IRS Form 1099-R and Recipient Income Tax Information handout by January 31 of the year after you received the PLOP to assist you in properly reporting the amount.
Federal Income Tax
SERS is required to withhold federal income tax from your monthly pension amount unless you elect in writing not to have any withholding. You need to complete and file an Internal Revenue Service (IRS) Form W-4P with SERS to instruct the retirement system on whether income tax should be withheld.
If you do not file this form, SERS withholds as if you had filed married with three withholding allowances.
State Income Tax
Your SERS pension amount may be subject to state and/or local taxes. You should consult the appropriate tax department in the area in which you live to determine your obligations.
For Ohio residents, your SERS pension amount is subject to Ohio state income taxes. However, SERS is not required to withhold amounts for state tax unless you indicate the specific amount you wish to have withheld.
You should consult your own tax advisor, the IRS, or state or local tax departments for advice on your specific tax questions. SERS cannot provide individual tax advice.
Updating Your Tax Withholding
Both your state and federal tax withholding can be updated anytime using Account Login, or you can complete the following forms and return them to SERS: