Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Taxes topic
No spam. Unsubscribe anytime.
Nebraska Retirement Systems explains Form W4N for annuities and lump-sum withdrawals
Summary
Nebraska Retirement Systems advised members that Form W4N lets annuity recipients change Nebraska state income tax withholding, designate higher withholding for lump-sum distributions, and claim a one-year exemption after moving out of state; specific line instructions and a deadline to renew exemptions were provided.
A presenter for Nebraska Retirement Systems told members that if they enroll in an Empers-administered annuity they may need to complete Form W4N to change Nebraska state income tax withholding.
The presenter said, “Form W4N is the Nebraska state income tax withholding form. It allows you to change the default state tax withholding on annuity payments from single with zero allowances to the setting that best fits your situation.” The guidance applies both to periodic annuity payments and to lump-sum distributions, which members may treat differently for withholding purposes.
Why it matters: The presenter noted that for lump-sum distributions Form W4N allows members to designate a state withholding amount greater than the default 5 percent. The office also said the five-year designated period annuity for state and account employees is treated as a lump-sum distribution for tax purposes, which affects withholding and may require a separate Form W4N.
How to file: Members were directed to empers.n.gov. The presenter walked through the site navigation: hover over "Member Info," select "Forms," then scroll to "All Distributions — Nebraska state income tax withholding form" and click the link to open the form and instructions.
Completing the form: The presenter gave line-specific guidance: to withhold additional state tax, enter the dollar amount on line 2; to file as exempt, write "exempt" on line 3, then sign and date the form and return it to Empers. The presenter warned that no other lines need to be completed and that filling additional lines incorrectly may lead to the form being returned.
Renewing exemptions and multiple distributions: The presenter said that if a member moves out of Nebraska, Form W4N allows filing as exempt from Nebraska withholding, but the exemption is valid for one year only and a new Form W4N must be submitted to Empers by Feb. 15 each year to continue the exemption. State and county members who elect multiple distribution types and wish to withhold additional Nebraska income tax were told they must submit a separate Form W4N for each distribution type.
Assistance and contact: For help with other income, credits, or adjustments the presenter recommended contacting a tax preparer or certified public accountant. For general questions about forms or filing for retirement, the presenter provided Nebraska Retirement Systems member services at 402-471-2053.
The message closed with a brief sign-off from the presenter.
