New Federal Withholding Tax Tables
The “Making Work Pay” federal tax credit changed the
IRS tax withholding tables for 2009 and 2010. The new tables were effective with
the Program’s March withdrawals.
For those participants having federal taxes withheld based on marital status and
the number of exemptions claimed (as opposed to the required 20% federal tax
withholding rate on partial or full lump-sums or periodic payments for less than
10 years), the effect was a decrease in the tax withheld and a corresponding
increase to the net payment. Depending on your eligibility for this tax credit,
this change could result in under-withholding of federal taxes during the year
and a larger amount of taxes due with your tax return.
Ohio Deferred Compensation Plan does not provide tax advice please make sure to
discuss changes with a tax advisor. If you decide to change the amount of
federal tax withheld from your Program withdrawals, a new Form W-4P Withholding
Certificate must be completed. Please call us at 1-877-644-6457 to have this
form mailed to you.