Please remember that effective January 1st 2012 Michigan’s income tax law with respect to taxation of pensions (including IRA and 401K) plan distributions changes and depending on the age of the recipient such distribution may be taxed in whole or part. This may impact required withholding and or estimated tax payments in 2012. Also if people are in their first year of mandatory distributions and they have the option of taking their first distribution in 2011 or 2012 this variable should be considered together with effective federal tax rates.