Are taxes withheld from lump-sum payments on active general member death benefits?
Yes. If you are the surviving spouse or the ex-spouse of the decedent, federal law requires LACERA to withhold 20 percent in federal income tax. The law requires LACERA to withhold ten percent in federal income tax if you are the surviving domestic partner or other non-spouse beneficiary. Additionally, LACERA must withhold an additional two percent in state tax if the recipient resides in California.
Related Questions
- Are active general member lump-sum death benefits eligible for a tax-deferred rollover to a traditional IRA or eligible employer plan?
- Are active safety member lump-sum death benefits eligible for a tax-deferred rollover to a traditional IRA or eligible employer plan?
- Are taxes withheld from lump-sum payments on active safety member death benefits?
