Determining How Much State Income Tax To Be Withheld From Your Retirement Plan Distributions

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The Law Offices of Spadea & Associates assists clients with their taxes from all over the country. From time to time our clients need help determining how much state income tax should be withheld from their pension or retirement account distributions. Listed below are the sixteen states that tax pensions and retirement accounts. Obviously, if you do not reside in one of the states listed below you should not have any state income tax withheld from your pension distribution. However if you do live in one of the 16 states listed below, when you fill in IRS form W-4P, you should have state income tax withheld at the following rates:

 State Name Income Tax Withholding Percentage of Gross Distribution
 ARKANSAS 5%
 CALIFORNIA 9%
 DISTRICT OF COLUMBIA 8.95%
 DELAWARE 5%
 GEORGIA 6%
 IOWA 5%
 KANSAS 4.50%
 MASSACHUSETTS 5.10%
 MAINE 5%
MICHIGAN 4.25%
NORTH CAROLINA 4%
NEBRASKA 5%
OKLAHOMA 5%
OREGON 8%
VIRGINIA 4%
VERMONT 9%

You can find a W-4P on my website resource page under IRS Tax Forms. If you have any questions or need help with your taxes call Gregory J. Spadea at 610-521-0604.

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