Withholding for Annuities and Pensions


Beginning with payments made on or after January 1, 2022, Minnesota requires withholding on annuity and pension payments unless the recipient asks you not to withhold.

Recipients should use Form W-4MNP, Minnesota Withholding Certificate for Pension and Annuity Payments, to set the rate or amount of withholding or opt out of withholding on these payments.

If you are a pension recipient, use Form W-4MNP to set your withholding to any rate or amount, including none. If you do not opt out of withholding or provide a withholding rate or amount, your payer must withhold at the default rate of 6.25%. 

If you are a pension payer, do not change or set the withholding rate without contacting the recipient to complete a Form W-4MNP (with either revised date 8/15/23 or 1/24). Do not automatically set the withholding rate to 6.25% without first contacting your recipient to complete Form W-4MNP. If they do not respond, you must withhold at the default rate of 6.25%.  


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