Annuity, pension, retirement, or other deferred compensation
plans; withholding; requests; payor responsibility
Sec. 15.7. (a) The payor of a periodic or nonperiodic distribution
under an annuity, a pension, a retirement, or other deferred
compensation plan, as described in Section 3405 of the Internal
Revenue Code, that is paid to a resident of this state shall, upon
receipt from the payee of a written request for state income tax
withholding, withhold the requested amount from each payment. The
request must be dated and signed by the payee and specify the flat
whole dollar amount to be withheld from each payment. The request
must also specify the payee's name, current address, taxpayer
identification number, and the contract, policy, or account number to
which the request applies. The request shall remain in effect until the
payor receives in writing from the payee a change in or revocation of
the request.
(b) The payor is not required to withhold state income tax from a
payment if the amount to be withheld is less than ten dollars ($10) or
if the amount to be withheld would reduce the affected payment to
less than ten dollars ($10).
(c) The payor is responsible for custody of withheld funds, for
reporting withheld funds to the state and to the payee, and for
remitting withheld funds to the state in the same manner as is done
for wage withholding, including utilization of federal forms and
participation by Indiana in the combined Federal/State Filing
Program on magnetic media.
As added by P.L.91-1989, SEC.1.
Last modified: May 28, 2006