NEW IRS TAX WITHHOLDING TABLES

September 1, 2009

You will probably notice a reduction in your pension check this month:

NEW IRS TAX WITHHOLDING TABLES     

                                      
In February 2009, the IRS implemented new tax withholding tables as part  
of the Making Work Pay Tax Credit, which was a key provision of the       
American Recovery and Reinvestment Act.  The intent of the credit was to  
generate more take home pay for many people by reducing the amount of     
Federal tax that was withheld from some income sources beginning in April.

The Internal Revenue Service (IRS), recognized that the February tables   
were not appropriate for pension payments and reoccurring payments from   
the Savings-Stock Purchase Program (S-SPP) and Personal Savings Plan (PSP)
and therefore released new optional withholding tables on May 14, 2009,   
for use with these payments.  Reoccurring payments dated on and after     
August 7, 2009 from the S-SPP and PSP, and August 11, 2009 from the       
Hourly-Rate Employees Pension Plan and GM Retirement Program for Salaried 
Employees are using these new withholding tables.  Payments from these    
plans include a message informing the payment recipient that the optional 
Federal tax withholding tables were used to calculate tax withholding. 

GM & Fidelity are now using the correct tables for retirees tax deductions on their pension checks. 

Listen to an IRS explanation here and then check your withholding:

http://www.irs.gov./pub/newsroom/marketing/internet/making_work_pay_tax_credit_general.mp3?portlet=7

Check your withholding here:

http://www.irs.gov./

More information here:

http://www.irs.gov/newsroom/article/0,,id=204447,00.html