Effective January 1, 2023, Athene will require new IRS forms if a periodic or non-periodic withdrawal is requested with a federal income withholding election other than “no federal tax withholding” or “default withholding.” Depending on the type of withdrawal, Athene will require form W-4R or W-4P to be submitted with the request.

The Internal Revenue Service (IRS) has revised the forms and instructions to determine federal withholding for pension and annuity payments. With this change, the IRS has split the prior withholding certificate into two forms.

• Form W-4P (Withholding Certificate for Periodic Pension or Annuity Payments): Form W-4P is used to determine federal tax withholding for periodic payments from annuities, such as distributions from SPIAs, annuitizations and substantially equal periodic payments under Secs. 72(t) and 72(q). The IRS changed the default withholding from married with three allowances to single and no allowances. Access additional information about Form W-4P from the IRS.
• New: Form W-4R (Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions): Form W-4R is used for nonperiodic payments from annuities, such as refunds prior to issue, lump sum or other one-time distributions, full and partial surrenders, income rider payments, and systematic withdrawals, including required minimum distributions. The IRS requires default withholding of 10% from these types of distributions unless the individual elects no withholding or a different federal tax withholding. Access additional information about Form W-4R from the IRS.

What you need to do

Use of the new forms and withholding instructions is required beginning January 1, 2023. In preparation, Athene has updated its process and procedures to comply with IRS requirements.

What Athene Is Doing

All Athene forms and electronic order entry platforms will be updated to reflect these changes.

Note: The changes to the federal withholding certificates do not impact a customer’s options to request a distribution by phone, in writing or on MyAthene. However, if a customer elects federal withholding other than no withholding or default withholding, the request must be submitted in paper form with Form W-4R or W-4P form, as appropriate.