2012 brings changes for Michigan retirees
Attention Michigan retirees (or any Michigan resident receiving IRA or pension distributions):
Beginning in 2012 the state of Michigan will begin its newly restructured tax program. This includes the taxation of pension and IRA income for some (not all) recipients based on various criteria.
If you have not heard from your pension/IRA custodian regarding this, you need to take note. Unless you elect otherwise, they will begin to withhold 4.35% Michigan income tax on all distributions as of January 1, 2012. You will need to file an updated form MI-W-4P with the administrator of your fund to put your correct election in place.
Please feel free to call us with any questions you may have regarding this.