Use 2021 W-4P to Update Federal Income Tax Withholding

Mar 24, 2022

Notices were mailed to pension recipients in January reminding them of their right to change their federal income tax withholding by submitting a new IRS Form W-4P if they choose to do so.

These notices are provided in accordance with federal regulations that require NHRS to notify you every year of your right to change your federal income tax withholding.  The most recent Form W-4P that you have filed with the retirement system automatically remains in effect, unless you file a new Form W-4P. If you do not wish to make an election or to change your prior election, no action is necessary.

The IRS has revised Form W-4P. However, because the final version of the new form was not ready by the end 2021, the IRS announced that the 2021 version of the Form W-4P may be used through the end of 2022.

NHRS retirees who wish to update their federal tax withholding this year should continue to use the 2021 Form W-4P.

While the 2022 version of Form W4-P has been posted on the IRS website, the potential exists that additional changes to the form may be made before it’s use becomes mandatory on January 1, 2023. The new version of the form contains new fields and other changes that will require reprogramming of the NHRS pension administration system. As a result, NHRS is not accepting the 2022 version of Form W4-P at this time.

The 2021 Form W-4P is available on the NHRS Retiree Forms page.

If you wish to increase or decrease the amount of federal income tax to be withheld from your retirement benefits, you must complete a new Form W‑4P and return it to:

New Hampshire Retirement System
54 Regional Drive
Concord, NH 03301‑8507

Please be advised that, if you elect to have no federal income taxes withheld or if you do not have sufficient federal income tax withheld from your retirement benefits, you may be responsible for payment of estimated tax.  If you need assistance in estimating your tax, you should consult with a tax advisor or the IRS.  The retirement system cannot assist you in computing your estimated federal income tax.  If federal income tax is not being withheld from your retirement benefits and you now wish to revoke that election and have federal income taxes withheld, you must complete a Form W-4P and return it to the retirement system at the address shown above.  If you have never filed a Form W-4P with NHRS, the amount of federal income tax withheld from your retirement benefits will be computed as if you were a married individual claiming three withholding allowances.  In addition, if you file a Form W-4P with conflicting or missing information, NHRS will return the form to you for clarification and you will be treated as having not filed the form.  If you fail to provide the correct Social Security number, the amount of federal income tax that will be withheld will be computed as if you were a single individual claiming no withholding allowances.

For more information, call NHRS at 1-877-600-0158, Press 2.

Note: Changing your withholding is not mandatory. No action is required on your part unless you want to change the level at which Federal income tax is being withheld from your benefit.