A payee may name the number of allowances, decide how much is to be withheld, or elect not to have withholding for periodic or non‑periodic (including lump sum) payments. To do so, the payee files with the payer a Withholding Certificate for Pension or Annuity Payments (DE 4P) (PDF) (edd.ca.gov/pdf_pub_ctr/de4p.pdf) or federal Form W-4P (irs.gov) or a substitute form pro vided by the payer. Such choice remains in effect until revoked or changed by the payee by filing a new election form. However, the election on non‑periodic payments is on a payment‑by‑payment basis unless the payer decides to make the election permanent.
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