Federal and state laws require the Oklahoma Public Employees Retirement System (OPERS) to withhold income tax from your monthly retirement benefit unless you tell us in writing that you do not want taxes withheld. The tax rates applied to your benefit are based on withholding tables provided by the Internal Revenue Service and the Oklahoma Tax Commission.
Oklahoma State Income Tax
NOTE: If you live outside of Oklahoma and have state taxes withheld on your OPERS benefits, those amounts are remitted to the Oklahoma Tax Commission and not the taxing authority of your state of residence.
Federal Income Tax
If you have any accumulated nontaxable contributions (post-tax contributions) as of your retirement date, you will be able to reduce the taxable portion of your benefit to the extent of your nontaxable contributions in accordance with the Internal Revenue Service’s Safe Harbor provision. Generally, this method allows OPERS to spread your accumulated nontaxable contributions over your life expectancy or the joint life expectancies of you and your joint annuitant. OPERS will calculate this exclusion for you, and the resulting taxable portion will appear on your Form 1099-R. However, you may consult IRS Publication 575 for more information about the Safe Harbor method.
Federal and State Income Tax Withholding Instructions
You can indicate your tax withholding preferences by completing the Withholding Preference Certificate. This form allows you to choose separate preferences for federal and Oklahoma state taxes.
You may specify that you do not want taxes deducted from your benefit.
You may elect to have specific “allowances claimed” by indicating your marital status and number of allowances. By doing this, OPERS will determine the amount, if any, to be withheld based on current federal and state withholding tables. You may also elect to withhold an additional dollar amount to be withheld.
A new Withholding Preference Certificate may be completed at any time to change future withholdings.
1099-R Frequently Asked Questions
What is a 1099-R?
When are 1099-R forms mailed?
Why is the taxable amount (Box 2a) less than the gross distribution (Box 1)?
Where do I find the amount withheld for federal and state taxes?
What does the number in Box 7 represent?
Box 11 is left blank. What is that number?
Why did I receive multiple 1099s from OPERS?
How do I determine how much was withheld from my retirement for medical insurance premiums?
How do I get a duplicate copy of my 1099-R?
You may request a duplicate Form 1099-R by completing a Member Information or Document Request form. Your address on file must match the address on the form, or you must check the new address box. This form can be completed and submitted online. Please allow 10-15 business days to receive your 1099-R.
Can you email or fax my 1099-R?
Your 1099-R will only be mailed to the address on record. You can request a copy via email or fax by completing a Member Information or Document Request form. This form can be completed and submitted online. Requests for email or fax copies will be completed within two business days.