IRS Releases Draft 2023 Form W-4R

The IRS has posted a draft 2023 Form W-4R, Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions. New Form W-4R is to be used for nonperiodic and rollover distributions. Nonperiodic distributions are subject to a 10 percent withholding rate unless a different rate is elected. Eligible rollover distributions are subject to a mandatory 20 percent withholding rate on the taxable amount of the distribution unless a higher rate is elected. As previously announced, the IRS has postponed requirements to begin using these forms until January 1, 2023. Form W-4P can continue to be used until that time.