Okla. Admin. Code § 710:90-1-13 - Pensions, annuities, and certain other deferred income

(a) Treatment of designated distributions. Designated distributions, as defined by the Internal Revenue Code (IRC), Section 3405, whether periodic or non-periodic, may be subject to Oklahoma income tax withholding.

(b) Treatment of periodic payments. The amount to be withheld from a periodic payment is determined as if it were a payment of wages. The marital status and number of withholding allowances a recipient may claim in determining the tax to be withheld shall be claimed on Form OK-W-4-P, Withholding Certificate for Pension or Annuity Payments.

(1) If the recipient has not provided a withholding certificate, tax will be withheld as if the recipient were married and claiming three (3) withholding allowances.

(2) The recipient can choose not to have tax withheld, regardless of how much tax is owed for the previous year, or is expected to be owed in the current year.

(c) Treatment of non-periodic payments. Tax will be withheld at the top marginal individual income tax rate on any non-periodic payments.

(1) The recipient must use Form OK-W-4-R, Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions to determine whether income tax will be withheld.

(2) The recipient can also use Form OK-W-4-R, to choose not to have tax withheld.

(d) Employer contributions. Employer contributions to qualified cash or deferred arrangements are not subject to Oklahoma withholding tax.

Notes

Okla. Admin. Code § 710:90-1-13

Added at 10 Ok Reg 3873, eff 7-12-93; Amended at 11 Ok Reg 3529, eff 6-26-94; Amended at 16 Ok Reg 2674, eff 6-25-99

Amended by Oklahoma Register, Volume 34, Issue 24, September 1, 2017, eff. 9/11/2017 Amended by Oklahoma Register, Volume 37, Issue 24, September 1, 2020, eff. 9/11/2020 Amended by Oklahoma Register, Volume 39, Issue 24, September 1, 2022, eff. 9/11/2022 Amended by Oklahoma Register, Volume 40, Issue 22, August 1, 2023, eff. 8/11/2023