Moving Within the U.S.
If you move from California to another state, LACERA will stop the withholdings for California State taxes on your monthly retirement checks. If you do not reside in California, you may not elect to have LACERA withhold California State tax from your LACERA payments. Tax requirements on retirement income differ from state to state, so you should consult with your own tax advisor and contact the appropriate state tax authority for its rulings.
As a U.S. citizen or resident alien, you may use Form W-4P to elect to not have federal tax withheld, but only if you provide a home address in the United States. This address must include a street number. (In the event of an IRS audit, it will be your responsibility to substantiate your residence. LACERA is not responsible for the address you submit.) If you submit a P.O. Box as your home address, LACERA will withhold tax at the applicable default federal withholding rate. (See Federal Tax Withholding on the Tax Requirements page for more details.)
Moving out of state or abroad can affect your healthcare plan availability. See Moving Out of Area under the Retiree Healthcare section or contact our Retiree Healthcare Division.
Moving to Another Country
If you are a nonresident alien (living outside the United States and not a U.S. citizen or resident alien), different income tax withholding rules apply. IRS regulations generally require LACERA to withhold income tax from allowance payments delivered outside of the United States. Without your completed W-4P form on file, LACERA must withhold federal income tax from your monthly allowance at the applicable default federal withholding rate. (See Federal Tax Withholding on the Tax Requirements page for more details.)
To elect to have LACERA withhold federal tax at a rate higher than the default rate, you must submit W-4P form. If the category you elect on Form W-4P results in a lower withholding amount than the amount based on the default rate, LACERA will withhold at the default rate. As a nonresident alien, you may not use Form W-4P to elect to have any federal tax withheld.
If you move from California to another country, LACERA will stop the withholdings for California State taxes on your monthly retirement checks. If you do not reside in California, you may not elect to have LACERA withhold California State tax from your LACERA payments.
Check with a professional advisor to determine which withholding category is best for your personal situation; LACERA does not provide tax advice.