PAYMENT OPTION CHANGES
Changes to RMDs
1. Owner Responsible: Choose this option to make the account owner responsible for determining and withdrawing the Required Minimum Distribution
(RMD) each year.
2. Ter m: Choose this option to receive payments over a specific number of years. The annual amount must be equal to or greater than the RMD. If the
payments over the term indicated do not equal or exceed the RMD, payments will equal the RMD.
3. Specific Amount: Choose this option to receive a specified amount for each payment. The annual total of these payments must be equal to or
greater than the RMD. If the amount indicated does not equal or exceed the RMD, the payment amount will equal the RMD.
4. Lump Sum: Choose this option to receive the entire IRA balance in one payment. This will bring the balance of the IRA to zero. An IRA Withdrawal
Authorization form must be submitted for the full amount to close the IRA.
5. Required Minimum Distribution (RMD): Choose this option to receive the minimum amount required by the IRS.
SUMMARY OF RULES AFFECTING THIS FORM
GENERAL INFORMATION (REQUIRED FOR PROCESSING)
1. Payment Type: There are 4 payment types. Choose only one. If a payment option is not selected, we will apply these changes to the “Current”
periodic payment type. If a change needs to be made to more than one periodic payment election, complete a separate Traditional IRA Periodic
Payment Change (Form 2345) for each periodic payment type.
Note: If more than one payment type is selected on the same form, this form will not be processed.
A. Current: (All Ages) Changes made to the “Current” payment type will apply to this year’s payment and all future payments, unless a Future
change is later made. Choose this option to make changes to this year’s payment(s) and all subsequent payments.
B. Future: (All Ages) Applies to changes for next year’s payments, and all payments thereafter. Choose this option to make changes to the
current election to begin next year, OR if making changes to an existing “Future” election.
C. Last Year Delay: (RMD Only) Applies to account owners in the year they attain age 73 who elected to delay their first RMD payment (from the
year they attained age 72) to this year, to be taken by April 1. Choose this option to make changes to the “Last Year Delay” periodic payment
election.
D. Next Year Delay: (RMD Only) Applies to account owners who are 72 and wish to delay their first RMD payment from the year they attained age
72 until the year they attain age 73 to be taken by April 1. This will result in the account owner receiving 2 payments in the year they attain age
73. Choose this option to make changes to an existing “Next Y
ear Delay” periodic payment election.
2. Change Effective Date: The date of the first payment to which the changes indicated on this form will apply. This date must be in MM/YYYY
format. If a change effective date is not provided, this form will not be processed.
3. Amount Disbursed: The amount that has been or will be disbursed to the IRA owner THIS year, prior to the Change Effective Date. If no payments
have been or will be made this year before these changes should take effect, indicate this by entering zeros in all three fields. If these fields are left
blank, we will assume the amounts to be zero. If the changes indicated are for a future year, no amounts should be supplied.
WITHHOLDING NOTICE INFORMATION (Form W-4P/OMB No. 1545-0074)
Basic Information About Withholding From Pensions and Annuities. Generally, federal income tax withholding applies to the taxable part of payments made from pension,
profit sharing, stock bonus, annuity, and certain deferred compensation plans; from IRAs; and from commercial annuities.
Caution: There may be penalties for not paying enough tax during the year, through either withholding or estimated tax payments. New retirees should see Publication 505,
Tax Withholding and Estimated Tax. It explains the estimated tax requirements and penalties in detail. You may be able to avoid quarterly estimated tax payments by having
enough tax withheld from your IRA using form W-4P.
Purpose of Form W-4P. Unless you elect otherwise, 10 percent federal income tax will be withheld from payments from individual retirement accounts (IRAs). You can use
Form W-4P (or a substitute form, such as this form), provided by the trustee or custodian, to instruct your trustee or custodian to withhold no tax from your IRA payments
or to withhold more than 10 percent. This substitute form should be used only for withdrawals from IRAs that are payable upon demand.
Nonperiodic Payments. Payments made from IRAs that are payable upon demand are treated as nonperiodic payments for federal income tax purposes. Generally, nonperiodic
payments must have at least 10 percent income tax withheld.
Your election will remain in effect for any subsequent withdrawal unless you change or revoke it.
Payments Delivered Outside of the U.S. A U.S. citizen or resident alien may not waive withholding on any withdrawal delivered outside of the U.S. or its possessions.
Withdrawals by a nonresident alien generally are subject to a tax withholding rate of 30 percent. A reduced withholding rate may apply if there is a tax treaty between the
nonresident alien’s country of residence and the United States and if the nonresident alien submits Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United
States Tax Withholding, or satisfies the documentation requirements as provided under federal regulations. The Form W-8BEN must contain the foreign person’s taxpayer
identification number.
For more information, Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, and Publication 519, U.S. Tax Guide for Aliens, are available on the IRS
website at www.irs.gov or by calling 1-800-TAX-FORM.
Revoking the Exemption From Withholding. If you want to revoke your previously filed exemption from withholding, file another Form W-4P with the trustee or custodian
and check the appropriate box on that form.
Statement of Income Tax Withheld From Your IRA. By January 31 of next year, your trustee or custodian will provide a statement to you and to the IRS showing the total
amount of your IRA distributions and the total federal income tax withheld during the year. Copies of Form W-4P will not be sent to the IRS by the trustee or custodian.
