Budget & Taxes (Pensions)

SB 584 would change Michigan's tax law to make it optional for pension administrators to withhold income tax from pension or annuity payments. Currently, pension providers must withhold tax under Section 703 of the Income Tax Act, but this bill would allow them to choose whether to withhold. The change directly affects pension administrators (like retirement plan providers) and recipients of pension payments, as it removes a mandatory withholding requirement. The bill amends Section 703 of the 1967 Income Tax Act (MCL 206.703) without altering other withholding rules for employers, flow-through entities, or casinos.