Updated October 18, 2026. Quick answer: Form W-4R is the certificate you give a payer for a nonperiodic payment or an eligible rollover distribution. Lines 1a and 1b identify you, and the bullets above line 2 state the default withholding rate for each type of payment. The next page, on line 2, covers choosing a different rate.
What this part is for
The top of the Form W-4R certificate sets the rule: “Your withholding rate is determined by the type of payment you will receive.” The purpose line says “Complete Form W-4R to have payers withhold the correct amount of federal income tax from your nonperiodic payment or eligible rollover distribution from an employer retirement plan, annuity (including a commercial annuity), or individual retirement arrangement (IRA).” “Don’t use Form W-4R for periodic payments”. Periodic payments use the Form W-4P certificate instead, starting with Form W-4P Step 1.
The lines, one by one
| Line | What the form says |
|---|---|
| 1a | “First name and middle initial Last name”. The line also asks for an address and a city or town, state, and ZIP code. |
| 1b | “Social security number” |
| Intro, nonperiodic | “For nonperiodic payments, the default withholding rate is 10%.” “You can choose to have a different rate by entering a rate between 0% and 100% on line 2.” |
| Intro, eligible rollover | “For an eligible rollover distribution, the default withholding rate is 20%.” “You can choose a rate greater than 20% by entering the rate on line 2.” “You may not choose a rate less than 20%.” |
| Intro, outside the U.S. | “Generally, you can’t choose less than 10% for payments to be delivered outside the United States and its territories.” |
For an estate, line 1b works differently: “For an estate, enter the estate’s employer identification number (EIN) in the area reserved for” the Social Security number. Line 2, where you enter a rate, is the subject of Form W-4R line 2.
Where the number comes from
The default rates come from the type of payment. The instructions explain the nonperiodic default: “Your payer must withhold at a default 10% rate from the taxable amount of nonperiodic payments unless you enter a different rate on line 2.” “Distributions from an IRA that are payable on demand are treated as nonperiodic payments.” “Note that the default rate of withholding may not be appropriate for your tax situation.”
For eligible rollover distributions: “are subject to a 20% default rate of withholding on the taxable amount of the distribution.” “You can’t choose withholding at a rate of less than 20%”. “Don’t give Form W-4R to your payer unless you want more than 20% withheld.” See the 20 percent withholding on a pension lump sum guide for the plan side of this rule.
The instructions also list payments that fall outside the 20% rule: “Note that the following payments are not eligible rollover distributions for purposes of these withholding rules”. Four of the listed items are “Distributions required by federal law, such as required minimum distributions”; “Eligible distributions to a domestic abuse victim”; “Qualified disaster recovery distributions”; and “Qualified birth or adoption distributions”. The form closes the list with “See Pub. 505 for details.” For required minimum distributions, see the RMD withholding strategy page.
Where it goes next
The form is addressed to the payer: “Give Form W-4R to the payer of your retirement payments.” It also says “is not valid unless you sign it.”
If the payer never receives the form, the note says: “If you don’t give Form W-4R to your payer, you don’t provide an SSN, or the IRS notifies the payer that you gave an incorrect SSN, then the payer must withhold 10% of the payment for federal income tax and can’t honor requests to have a lower (or no) amount withheld.” “Generally, for payments that began before 2026, your current withholding election (or your default rate) remains in effect unless you submit a Form W-4R.” For how withheld tax is reported and claimed, see Form 1099-R box 4 and Form 1040 line 25.
The caution under the instructions adds “Your withholding choice (or an election not to have withholding on a nonperiodic payment) will generally apply to any future payment from the same plan or IRA.” Check your result with the retirement withholding calculator.
Edition and line numbers
This page reads the 2026 version of Form W-4R, the current file irs.gov served on 2026-10-18. A payer may still be applying an earlier election; check the date and year printed on your own form. Use the line numbers and step letters printed on the copy you are holding, because a different edition can number or word them differently.
Common mistakes
- Sending a W-4R for payments made at regular intervals. The form says “Don’t use Form W-4R for periodic payments”
- Trying to lower the default on a rollover. The instructions say “You may not choose a rate less than 20%.”
- Assuming a missing Social Security number changes nothing. The note says the payer “can’t honor requests to have a lower (or no) amount withheld.”
Related: Form W-4R, Form W-4P, 20 percent withholding on a pension lump sum, Form 1099-R box 4, and RMD withholding strategy.
Sources
- Form W-4R (2026), Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions: https://www.irs.gov/pub/irs-pdf/fw4r.pdf
- IRS: About Form W-4R: https://www.irs.gov/forms-pubs/about-form-w-4r
Read from the IRS documents linked above on October 18, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.