Taxes & Withholding
SCERS retirement benefits are considered taxable income. Most retirees choose to withhold federal and/or state taxes from their monthly payments, but withholding is optional. This section explains how your SCERS benefit is taxed and what you can do to manage your withholding preferences.
What You Should Know
- SCERS retirement benefits are generally subject to federal income tax
- California residents may also be subject to state income tax
- You can make or change your withholding elections at any time
- SCERS provides a Form 1099-R each January to report your total benefit and any taxes withheld from the prior year
SCERS cannot provide tax advice. We recommend consulting a tax advisor to determine the right withholding amount for your situation.
Withholding Options
When you retire, you’ll be asked to complete a SCERS Tax Withholding form for Federal and California withholding
You are not required to withhold taxes from your benefit, but if you choose not to, you may owe taxes when you file your annual return.
You can update your elections at any time by submitting new forms to SCERS.
Accessing Your Tax Documents
SCERS mails IRS Form 1099-R to your MySCERS account and mails the form to all benefit recipients each year by January 31. This form includes:
- Total amount paid during the year
- Taxable portion of your benefit
- Total federal and state taxes withheld
You can request a reissued copy or update your mailing address at any time by contacting SCERS.
More Help Is Available
Visit the following sections for more detailed guidance: