General Tax Forms
- How is my income taxed?
- How do I determine the correct tax withholding for withdrawals?
- I want to designate state tax withholding, but I'm in a non-mandatory withholding state. How do I designate this?
- What is the difference between a W-8BEN and a W-7 Form?
How is my income taxed? Withdrawals are generally taxed as ordinary income unless you have after-tax funds in the account. If you have after-tax funds in the account, that money is returned to you tax free upon withdrawal.
We are required to withhold 20% of the amount withdrawn for your federal taxes except for lifetime annuity payments and Minimum Distribution Option payments. You can either designate a dollar amount or percentage you want withheld or opt to have no withholding from these types of income methods. If you do not make an election, we will withhold 10% of your payments.
How do I determine the correct tax withholding for withdrawals? For tax advice and the correct amount of withholding for your situation, please consult your tax advisor.
I want to designate state tax withholding, but I'm in a non-mandatory withholding state. How do I designate this? You can include a signed and dated Letter of Instruction (LOI). You will need to provide your contract numbers and the dollar amount or percentage you want withheld from each payment.
What is the difference between a W-8BEN and a W-7 Form?A W-8BEN form is used to certify your foreign status and is required for anyone living outside the United States.
A W-7 form is used when we do not have an Individual Taxpayer Identification or Social Security number on file for you.