Pension benefit payments are generally considered taxable income under both federal and State of Rhode Island income tax laws.
At the time of retirement you will need to instruct ERSRI on your tax withholding election. If you have any questions regarding the taxability of your retirement benefit, please consult a tax professional.
ERSRI does not withhold state income taxes for any state other than Rhode Island.
Making Changes to Your Tax Withholding Elections
You may make tax changes online by using the link below to log into your online retirement account on the ERSRI Member Portal or by downloading the following two forms and returning them to ERSRI. Forms may be submitted by mail or by fax to (401) 462-7691.
IRS Form W-4P is required for any member making a change or initiating retirement after 1/1/2023. You may find the 2024 Tax Calculator Workbook below helpful in completing the W-4P.
Existing payees who received benefit payments prior to December 31, 2022 are not required to submit IRS Form W-4P. Your original withholding election will remain in effect until you file a new IRS Form W-4P or Rhode Island State Tax Withholding Certificate with ERSRI.
ERSRI staff is not able to provide any tax advice to retirees. If you have questions about the amount of tax that should be withheld from your check, please consult your tax preparer or financial advisor.
ESRI issues 1099-R forms for retirees by January 31st of each year. Click the link below to learn more about 1099-Rs.
Click the link below to visit the IRS Seniors & Retirees web page for a wide variety of tax tips and publications.
The IRS also has a Tax Scams/Consumer Alerts web page with up-to-date safety tips to avoid becoming a victim of tax scams and identity theft. To learn more, click the link below.