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levr, Tax Advisor
Category: Capital Gains and Losses
Satisfied Customers: 29921
Experience:  Working for a large tax preparation service
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We have a pension plan employees in Oregon when they leave

Customer Question

We have a pension plan for our employees in Oregon when they leave they can either roll it over to another plan or take the full distribution which has to have 20% Federal out we had been giving them the option on State, but we have know heard we have to have a new BIN and have to take State tax out is that correct and what is the % I need to take out?
Submitted: 1 year ago.
Category: Capital Gains and Losses
Expert:  levr replied 1 year ago.

Withholding of Oregon State income tax is required is the taxable portion of pension payments is more than $10 and made to residents of Oregon.

For Non-Periodic Payments - 8% of the taxable distribution is withheld for state tax purposes.
That amount will be reported on 1099R form and will be credited toward total tax liability on the individual tax return - so if withholding is more than total tax liability (as calculated on the tax return) - the taxpayer will claim a refund.

If funds are distributed to nonresidents of Oregon or are rolled over to another retirement account - there is no withholding.

Expert:  levr replied 1 year ago.

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