Updated October 7, 2026. Quick answer: Not on regular payments unless you ask, but a lump sum may be different. The Department of Revenue’s withholding FAQ says “Withholding is voluntary for the recipient.” Its 2026 Employer’s Tax Guide also says “On lump sum distributions, withhold at the rate of 4.7 percent”. To start withholding on regular payments you give Form MO W-4P to the plan administrator.
Drawing a pension? Whether the state withholds tax from it, from its own documents: Missouri tax withholding on pension payments.
Missouri withholding at a glance
| Item | What the documents say |
|---|---|
| Is it required? | Voluntary for the recipient on pension or annuity income; the 2026 Employer’s Tax Guide also gives a 4.7% rate for lump sum distributions |
| Rate or amount | On a W-4P, a dollar amount per month you choose, not less than $10.00; on a lump sum distribution, the guide says 4.7% |
| How to start or stop it | Form MO W-4P to the retirement plan administrator, not the Department of Revenue; check line 1 for no withholding |
| Direct rollover | Not stated in the documents read |
| Changed for 2026? | No change stated; the form read is revised 11-2013 |
What the Missouri documents say
The Department of Revenue’s withholding FAQ says “Withholding is voluntary for the recipient.” Its 2026 Employer’s Tax Guide (Form 4282, revised 03-2026) describes the other side: a resident “may elect to have an amount withheld as a payment” on a pension or annuity.
The same guide also says “Missouri follows the federal guidelines for lump sum and periodic distributions” and “On lump sum distributions, withhold at the rate of 4.7 percent”. It does not say how that line fits with the voluntary rule for pension income, so ask the payer which it applies.
Form MO W-4P is the election. It sets a floor: “The amount to be withheld cannot be less than $10.00.” To choose no withholding you “place a check mark in the box next to Line 1”, and the form says “Should you need to change this form or complete a new one” you submit another.
A $50,000 withdrawal: cash in hand or a direct rollover
Take a $50,000 401(k) withdrawal paid to you. The IRS says a taxable eligible rollover distribution paid to you from an employer plan is subject to “mandatory income tax withholding (generally at a rate of 20%)”, which on $50,000 is $10,000 (computed as $50,000 times 20%) held back for federal tax. For Missouri, the 2026 Employer’s Tax Guide says “On lump sum distributions, withhold at the rate of 4.7 percent”, which on $50,000 would be $2,350 (computed as $50,000 times 4.7%). The same guide and the FAQ call pension withholding voluntary, so ask the payer which rule it applies before the money is paid. On regular payments the amount is the monthly dollar figure you write on a W-4P, at least $10.00.
The other path is a direct rollover to an IRA or another plan. For federal tax the IRS says “The mandatory withholding doesn’t apply in a direct rollover”. The Missouri documents read do not say how a direct rollover is treated for state withholding, so confirm it with the payer before choosing.
What a mover should know
This page is about Missouri as a state of residence. An instruction line written for a nonresident or part-year filer is not the rule for a resident, and none of the documents read settles a part-year or two-state case, so check each state’s own rule. The federal side is the same everywhere; CMG’s federal 20% withholding on a pension lump sum page covers it.
What the documents do not say
- The documents read do not say how a direct rollover is treated for Missouri withholding, and state no change for 2026. The W-4P read is the revised 11-2013 edition.
Common mistakes
- Giving Form MO W-4P to the Department of Revenue; it goes to the plan administrator.
- Assuming a lump sum carries no Missouri withholding; the 2026 Employer’s Tax Guide gives 4.7% for lump sum distributions.
- Assuming the answer for one state applies to another, or that state withholding settles the state tax owed at filing.
Related: how Missouri taxes 401(k) and IRA withdrawals, Missouri retirement taxes, retirement withholding calculator, and retirement taxes by state.
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Answer againSources
- Frequently Asked Questions: Withholding Tax: https://dor.mo.gov/faq/taxation/business/withholding.html
- Employer’s Tax Guide (Form 4282, revised 03-2026): https://dor.mo.gov/forms/4282_2026.pdf
- Form MO W-4P Withholding Certificate for Pension or Annuity Statements: https://dor.mo.gov/forms/MO%20W-4P.pdf
- IRS Tax Topic 413, Rollovers from retirement plans: https://www.irs.gov/taxtopics/tc413
Sources: the primary documents linked above, read on October 7, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.