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 State of Michigan Income Tax Law Changes Impact Pension and Retirement Distributions

DATE: Will be calculated from "Release Start Date" field.

​DEARBORN - Effective January 1, 2012, Michigan’s tax treatment of pension and retirement benefits was changed. Certain pension benefits may now be subject to Michigan income tax and tax may be required to be withheld from Ford pension payments to retirees. The Michigan tax treatment of pension income varies based on age, marital status, amount of retirement income, and number of personal exemptions claimed on the Michigan Income Tax Return (MI-1040).  As a result, new Michigan income tax withholding elections may need to be made.

Ford recently sent a Benefits Bulletin to pension recipients who could be impacted by this law change.  This communication included instructions on how to change your tax withholding elections on myfordbenefits.com.  After you log on, click on Pension > Actions > Add/Update Tax Withholding.

Please contact your tax advisor if you have any questions related to your Michigan tax liability and
the appropriate withholding election for your situation. You may wish to reference the State of Michigan Withholding Certificate for Michigan Pension or Annuity Payments (Form MI W-4P) and instructions to understand the various Michigan elections. Information regarding the Michigan income tax changes can be found online at www.Michigan.gov/taxes.

Keep in mind that the Ford National Employee Services Center (NESC) benefits representatives cannot provide tax counseling. However, you can contact the NESC at 1-800-248-4444 to request a State Income Tax Withholding Form, if you are unable to do so via self-service at www.myfordbenefits.com

  

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3/23/2012 10:00 AM