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5500 Preparer's Manual for 2012 Plan Years

5500 Preparer's Manual for 2012 Plan Years
The premier resource in the field of Form 5500 preparation, 5500 Preparer's Manual will help you handle the required annual Form 5500 filings for both pension benefits and welfare benefit plans.

CCH® PENSION — 01/21/11

IRS issues withholding tables for 2011

The IRS has issued Notice 1036, Early Release Copies of the 2011 Percentage Method Tables for Income Tax Withholding and Publication 15, (Circular E), Employer's Tax Guide, which contain the Federal percentage method and wage-bracket method withholding tables.

The additional pension withholding table that was issued to be used in conjunction with the regular withholding tables for tax year 2010 has not been reissued and is obsolete. That pension table was originally issued due to an unintended consequence caused by the Making Work Pay Tax Credit contained in the American Recovery and Reinvestment Act of 2009 (P.L. 111-5). The credit has not been extended for tax year 2011.

Periodic pension distributions

Generally, periodic payments are pension or annuity payments made for more than one year that are not eligible rollover distributions. Periodic payments include substantially equal payments made at least once a year over the life of the employee and/or beneficiaries or for 10 years or more. For wage withholding purposes, these payments are treated as if they are wages. Plan administrators figure withholding by using the recipient's Form W-4P and the federal income tax withholding tables. Note that recipients can elect not to have any income tax withheld.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.

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