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Tax Information


Tax Information

Note: On this page, SamCERA is providing certain tax-related information to you but is not providing tax advice. For questions regarding tax or legal matters, consult with a professional advisor; SamCERA does not offer tax or legal advice. Additional information can be found in the Guide to Your SamCERA Benefits.

Tax Withholdings

When you retire, you must submit completed tax withholding forms to SamCERA. If you need assistance determining which withholding election is best for you, consult with a professional tax advisor or contact the Internal Revenue Service (IRS) or the California Franchise Tax Board (FTB) for information. SamCERA does not provide tax advice.

SamCERA is required by law to withhold state and federal taxes at the applicable default rates as set forth under California and/or federal statutes, rules, and regulations.

If you reside outside of California or move out of state: SamCERA will not deduct state income tax from your benefit, for California or any other state. If you have an existing withholding and move out of state, any existing California withholding will stop being deducted when we receive a change of address form. We will still deduct federal income tax.

If you reside outside of the U.S. or move outside the U.S.: Please see IRS Form W-4P and EDD Form DE-4P for information and instructions.

Changing Your Withholding Elections: You can change your tax withholding election at any time by completing new Tax Withholding forms, which are available online: Member Forms or on the MySamCERA member portal: MySamCERA.

Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) Annual Notice: The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) requires that SamCERA notify retired members each year that they may change their tax withholding election. The current TEFRA notice can be found below.

1099-R Annual Tax Reporting Statement

Each January, retirees will receive an IRS 1099-R Form that contains information about reportable income and taxable income from SamCERA for the previous calendar year. It will also reflect the amount of federal and California taxes that have been withheld.

Retirees can view and print copies of their 1099-R online at MySamCERA.

Disability Retirement Benefits

If the Service-Connected Disability (SCD) benefit is equal to 50% of the member’s final average compensation, SamCERA will treat the entire SCD benefit as tax-exempt and it cannot be subject to any withholding. If the SCD is greater than 50% of the member’s final compensation, the portion of the benefit over 50% is taxable and the member’s withholding election will be based on that portion only.  For more information please refer to: IRS Private Letter Ruling Regarding Taxes and Disability.

Non-service-connected disability benefits are taxable.