The IRS recently released final versions of Forms W-4P and W-4R for 2022. These forms are used by qualified retirement plan participants, Individual Retirement Account (IRA) accountholders, and distribution recipients from certain other types of retirement arrangements to request withholding on certain payments from these arrangements other than in accordance with the applicable default withholding rules.
The revised forms break the 2021 Form W-4P into two forms for 2022: revised Form W-4P, which is now used only to request withholding on periodic pension and annuity payments, and new Form W-4R, used to request additional withholding on nonperiodic and eligible rollover distributions.
Although the final 2022 forms have now been issued, the IRS previously announced these forms would be optional in 2022, as plan participants and sponsors can continue to use the 2021 W-4P in 2022. Nevertheless, the IRS is encouraging plan participants and sponsors to update their systems and start using the applicable 2022 forms as soon as possible.
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