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. 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.
Moving to Another Country
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, by default LACERA must withhold income tax from your monthly allowance as if you were married and claiming three withholding exemptions. (The W-4P tax form refers to exemptions as allowances.) To elect to have LACERA withhold federal tax at other than the default rate, or to elect not to have tax withheld, you must submit Form W-4P. If the category you elect on Form W-4P results in a lower withholding amount, LACERA will withhold at the default rate.
As a U.S. citizen or resident alien, you may use Form W-4P to elect to not have 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 married with three exemptions rate.
Check with a professional advisor to determine which withholding category is best for your personal situation; LACERA does not provide tax advice.
This policy affects federal tax only. California State tax withholding elections are not affected.
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. Contact LACERA for more information.