W-4P for Pension and 457(b)

[gbmich]

I receive a pension and completed W-4P with my pension administrator, who is taking taxes out monthly.  I also have a separate 457(b) that I'm contemplating to start withdrawing a small amount monthly (and  the combined pension and 457(b) withdrawal will not bump me to the next Federal tax bracket).  The administrator of the 457(b) will take out taxes for each monthly distribution.  From what I have read, it seems I am supposed to revise the W-4P with my pension administrator to add the annual amount of my 457(b) withdrawal to take out additional taxes.  But since the administrator of my 457(b) is already taking out taxes, it seems to me by adding the 457(b) amount to my pension W-4P will result in too much taxes being taken out?  I don't want to have too little taxes taken out, but I also don't want to have too much taxes taken out either.  If both administrators are taking out taxes, why would I need the 457(b) to my pension W-4P?  Or am I misunderstanding the instructions?

[JohnB5677]

I suggest you complete a W-4P for the larger of the two accounts.

• Without a W-4P both funds would not withhold tax for the amount up to the standard deduction.
• This is not affected by tax brackets, but will result in a tax shortfall. 
• You would not withhold from the smaller account, but you will from the larger account.
• You would enter the amount of the smaller account in Step 2 box (b)(ii) of the  W-4P .