Employees can file a revised Form W-4 to change their wage withholding for 2020. The IRS announced the release of a new online withholding calculator estimator to make it easier for an employee to figure the most accurate withholding needed to cover tax liability (IR-2019-139, 8/6/19). The new tool at https://www.irs.gov/individuals/irs-tax-withholding-estimator can also be used by retirees, self-employed individuals, and other taxpayers to make sure withholding from any source (e.g., retirement plan benefits) is sufficient. The new tool is written in plain language and is mobile friendly.
The IRS advises all employees to perform a “paycheck check-up” to review their income tax withholding. Doing this can avoid an unexpected tax bill when the income tax return for the year is filed.
A retirement plan that pays fixed benefits based on actuarial projections.