IRS Posts 2027 Draft Forms W-4P, W-4R

The Internal Revenue Service has released the 2027 draft Form W-4P, Withholding Certificate for Periodic Pension or Annuity Payments and 2027 draft Form W-4R, Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions.

Form W-4P is used to withhold federal income tax from periodic retirement plan and IRA payments. Periodic payments are installment payments taken at regular intervals over a period of more than one year.

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.