Retirees can find pension tax calculators through various online resources, including the H&R Block, United States Office of Personnel Management and IRS websites. Retirees receiving pensions are subject to taxes on pre-tax and employer contributions, notes the H&R Block website.Continue Reading
Pension plans and retirement plans are subject to taxation, unless that funds were contributed to the plan after-tax, states H&R Block. There are several methods that the IRS uses to determine the amount to be taxed, which typically includes the recipient's age and year that payments start. The H&R Block website (HRBlock.com) offers visitors the IRS tables used for the simplified method for determining payments.
The U.S. Office of Personnel Management website (OPM.gov) is another resource that offers a simple calculator to determine the amount of federal income tax to be withheld from payments. The calculator features a box for monthly payments, the marital status and number of allowances that can be claimed.
The IRS website (IRS.gov) offers a comprehensive list of the withholding rules to determine the taxable parts of pension payments. The Pensions and Annuity Withholding page includes information on withholding on periodic payments, non-periodic payments, mandatory withholding on payments delivered outside the U.S., eligible rollover distributions and depositing and reporting withheld taxes.Learn more about Financial Calculations