Changing Your Tax Withholding
The Internal Revenue Service (IRS) released a revised Form W-4P (Withholding Certificate for Periodic Pension or Annuity Payments) that includes substantial changes to the federal tax withholding elections available and the calculation CalPERS performs to determine the amount to be withheld, effective January 1, 2023.
Due to these changes, you’ll no longer be able to adjust your federal withholding by electing a specific number of withholding allowances on your W-4P form. The IRS now offers new input fields for increasing or decreasing the amount to withhold, including fields for tax credits and deductions.
If you and your beneficiaries already receive ongoing payments and don’t wish to make changes to your federal tax withholding elections, then you’re not required to file a new form.
Since your tax situation can change from year to year, you may want to adjust the federal or California state withholding amounts deducted from your monthly benefit payment. There are a few ways to change your tax withholding:
- By mail or fax - Complete a Tax Withholding Election (PDF) form and mail or fax it to CalPERS.
CalPERS
P.O. Box 942715
Sacramento, CA 94229-2715
Fax: (800) 959-6545
- Online - Log in to myCalPERS and select Tax Withholdings from the Home tab. Follow our step-by-step How to Change Your Tax Withholdings on myCalPERS (PDF) guide if you need help.
If you need help completing the Tax Withholding Election form, call us at 888 CalPERS (or 888-225-7377) so we can assist you. However, since we cannot provide tax advice, you should contact your tax consultant, the Internal Revenue Service, and/or the Franchise Tax Board for specific information on your tax related needs.
Under federal law, we will withhold income tax from the taxable portion of your benefit unless you choose not to have taxes withheld.
Taxes
- Changing Your Tax Withholding
- Understanding Your 1099-R Tax Form
