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Workers & Retirees

Adjust Federal Income Tax Withholding

Why

PBGC is required to withhold federal taxes from your pension benefit unless you inform us otherwise. You have three options: 1) no withholding; 2) withholding a fixed dollar amount; or 3) automatic withholding based on your marital status and number of exemptions. If you do not make an election, we automatically withhold federal taxes as if you are a married individual with three exemptions.

You may change your election at any time.

Different withholding rules may apply if your mailing address is outside the United States or its territories.

If you decide not to have PBGC withhold taxes or the withholding amount is too low, you may have to pay an estimated tax directly to the Internal Revenue Service. If your estimated tax or withholding amount is too low, you may also have to pay penalties to the IRS.

How

OR

OR

  • Call PBGC's Customer Contact Center to request a federal tax withholding form.
    • Call at 1-800-400-7242. For TTY/ASCII (American Standard Code for Information Interchange) users, call the federal relay service toll-free at 1-800-877-8339 and ask to be connected to the number above.
    • Remember to have your social security number, plan name and case number ready for the customer service representative so that they are better able to help you.

State Income Taxes

While PBGC is required to withhold federal income tax, we do not withhold for state taxes. If your state has an income tax, you may owe tax on your PBGC benefit. To find out more, contact your state tax office (Excel file, 14.4 KB).