If you want to withdraw your contributions from LACERA and conduct a rollover, please contact us to speak with a Retirement Benefits Specialist to discuss your options. By rolling your funds over to another plan, you give up all rights to future retirement benefits from LACERA, including disability benefits.
To make sure you are fully informed about all aspects of moving your contribution funds, you should also consult with your IRA institution—such as Empower Retirement or other employer plan administrator for your 401(k) or 457(b)—regarding early withdrawal penalties or requirements.
Rollovers for Members Under Age 72
If you terminate service and are under the age of 72, you may withdraw and roll over your contributions to an IRA or another employer’s qualified plan. (Members over age 72 can roll over any portion of their funds that is not subject to required minimum distributions.) Your rollover will not be taxed until you take your funds out of the IRA or other employer’s qualified plan.
If you have contributions that were paid for with after-tax dollars, these funds cannot be rolled over to a traditional IRA. You will receive a check for these contributions without any withholdings because you have already paid taxes on these funds.
Withdrawal Taxes
For members under age 72: If you choose to not roll your funds over to a new plan, your lump-sum payment will be subject to a mandatory withholding rate of 20 percent (federal) and 2 percent if you are a California resident.
For members age 72 and above: If you withdraw your contributions, the portion of the withdrawal that is a required minimum distribution cannot be rolled over and is subject to federal and state tax withholding.