The Internal Revenue Service (IRS) has released a new federal tax withholding form (W-4P, Withholding Certificate for Periodic Pension or Annuity Payments) for pension payments in 2023. It includes substantial changes to the Federal tax withholding elections available, as well as changes to the calculation LACERS performs to determine the amount to be withheld. A significant change to Form W-4P is that filers will no longer be able to adjust their withholding by electing a specific number of withholding allowances. The IRS now offers new input fields for increasing or decreasing the amount to withhold, including fields for tax credits and deductions.
LACERS members and beneficiaries who already receive ongoing payments and who do not wish to make changes to their federal tax withholding elections are not required to file a new form; however, all are encouraged to review their withholdings and determine whether an adjustment is necessary. You may visit your MyLACERS account to view and estimate your tax withholdings:
The new form W-4P is posted on lacers.org/forms.
If you live in California and you wish to change your state tax withholding election, you will need to submit a separate DE-4P state tax withholding form. These forms and Frequently Asked Questions are available on the LACERS website at lacers.org/forms and lacers.org/frequently-asked-questions respectively.
LACERS and/or the Club are not authorized to provide tax advice. If you are seeking tax guidance or advice, we recommend you speak to a tax professional.