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Tax Information

Overview

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 a completed tax withholding form(s)to SamCERA. SamCERA is required by law to withhold state and federal tax at the “married with 3 allowances” rate if you do NOT have a form on file declaring your choice of withholding.

State Income Tax Withholding: SamCERA only withholds state income taxes for California. SamCERA does NOT withhold state income tax for any other state.

If you reside or move out of state, California income tax will not be withheld, and an updated Tax Withholding form must be submitted.

If you reside outside of the U.S.: Please see IRS Form W-4P (www.irs.gov/FormW4P) and EDD Form DE-4P (https://www.edd.ca.gov/pdf_pub_ctr/de4p.pdf) for information and instructions.

To change your withholding information: You can change your tax election at any time by completing a new Tax Withholding form (available on the Member Forms page) or online at MySamCERA.

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 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.

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