Income Tax Withholding
PERSI retirement benefits are generally taxable under the IRS tax code. Benefits paid to Idaho residents are generally subject to the State of Idaho income tax. PERSI provides the Federal W-4P Tax Withholding Certificate and the State of Idaho Tax Withholding Form which allow you to direct PERSI to withhold Federal and/or State of Idaho taxes from your monthly benefit. Your withholding selections may be updated online through myPERSI. PERSI staff is not qualified to provide individual tax advice or information. Questions concerning taxes should be directed to a tax professional or the appropriate taxing agency.
PERSI will mail your 1099-R on or before January 31 to your address on file. The 1099-R is a statement of the gross distribution paid in the respective calendar year. You may view and download your 1099-R online through myPERSI. Below is a sample 1099-R form with explanations for each box.
- Box 1 – Gross Distribution: The total amount of pre-tax income you received from PERSI.
- Box 2a – Taxable Amount: The portion of your gross distribution that is considered taxable. If you made payments to PERSI for a buyback or purchase of service with post-tax money, that will not be considered taxable as it is paid to you in retirement.
- Box 4 – Federal Income Tax Withheld: The amount of federal income tax that was withheld from your retirement benefit.
- Box 7 – Distribution Code: IRS code that is used to determine what type of retirement benefit you received.
- Box 14 – State Tax Withheld: The amount of Idaho state tax was withheld from your retirement benefit.
*If you have not received your 1099-R in the mail by February 15th, please contact the PERSI Answer Center at 208-334-3365 to request a duplicate copy be mailed to you.*