2023 Iowa Tax Withholding Update
Effective beginning with the January 2023 benefit payments, MFPRSI will stop withholding Iowa income tax for beneficiaries exempt from withholding under the Iowa income exclusion law.
On December 5, 2022, the Iowa Department of Revenue released updated Iowa income tax withholding guidance for House File (HF) 2317. The Iowa General Assembly ratified, and Governor Kim Reynolds signed, HF 2317 on March 1, 2022. HF 2317 excludes most retirement income from state taxable income for eligible taxpayers for tax years beginning January 1, 2023.
If you qualify for the exemption, but want to withhold Iowa income tax, you will need to complete a new Iowa W-4P form. The 2023 W-4P form can be found on the Iowa Department of Revenue’s website, as follows: https://tax.iowa.gov/sites/default/files/2022-12/2023IAW-4P%2844020%29.pdf.
MFPRSI will continue to withhold Federal income tax based on your Federal W-4P on file.
For questions, please contact MFPRSI at pensions@mfprsi.org or 515-254-9200.
NOTE: SEE PAGE 2 ON THE PDF BELOW FOR MFPRSI BENEFICIARIES EXEMPT FROM WITHHOLDING UNDER IOWA INCOME EXCLUSION LAW.
2023 Tax Withholding Update - MFPRSI Beneficiaries Exempt from Iowa Tax Withholding