IRS Releases 2026 Form W-4R Draft

The draft 2026 federal withholding certificate for nonperiodic payments was released Sept. 17 by the Internal Revenue Service.

The draft 2026 Form W-4R, Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions, adds qualified long-term care distributions to the list of payments that are not eligible for the default 20% withholding rate for certain rollover distributions. The Secure 2.0 Act allowed retirement plans to make distributions of up to $2,500 per year, which is to be adjusted for inflation, to cover premiums for qualifying long-term care insurance policies. The provision takes effect three years after the act was enacted, ...