Retirement Income

Here you will see both Types of 1099-Rs
How to Calculate Taxable Portion -- Penalties for Early Withdrawals & Exemptions -- Rollovers -- Public Safety Officer
& How to Enter Publix 1099-R & 1099-B to avoid doubling income reported

1099-R Retirement Form reports payments received from Pensions, IRAs, Annuities, Disability under Life Insurance, etc

If Box 2a has been calculated-- then a Basic certified person can do this return.
If Box 2a IS NOT calculated-- see instructions below (Advanced Certified)

RRB-1099R Railroad Retirement Form-actually 2 forms in one
The top portion (Blue form) gets entered as Social Security Income
The bottom form (green Form) gets entered in Taxslayer on the RRB-1099 entry screen

1099-R Box 2a is blank AND there is a value in Box 9a-- Use the SIMPLIFIED METHOD TO CALCUALTE THE TAXABLE AMOUNT
When the 1099-R has a blank Box 2a Taxable Amount, AND box 2b is checked 'Taxable Amount not Determined' AND there is an amount in Box 9b 'Employee Contributions' it is up to the tax preparer to calculate how much of the amount received in Box 1 is taxable. View video below for more information and to learn 2 different methods to calculate the taxable portion. I have included a link to the Annuity calculator tool shown in the video as well. For those that want to use Taxslayer to calculate the amount, there is also a link to an age calculator tool as well.

Form RRB-1099-R Box 3 have a value? Read this!!! (Railroad Retirement Green Form)
When Form RRB-1099-R has an amount in Box 3, use the Simplified method to calculate the taxable portion; If there is nothing in box 3, then the whole amount is taxable

Short video to learn more and see 2 methods for calculating the taxable portion.

Link to the Amazing Tool
Thank you Colorado Taxaide!

Because I was curious, I researched the exclusion amount for Surviving Spouse and learned something else interesting--click picture to see PDF. To learn more see IRS PUB 721 for the official tax law.

10% early withdraw penalty
Distributions from Retirement accounts may be subject to a penalty
if the client is under 59 1/2. There are exceptions to this rule.

Retired Public Safety Officers & Reservists Exclusions-Special Rules

Public Safety Officers can claim exception once they complete 25 years of service under the plan or attain age 50 (whichever is earlier).

Definition of qualified public safety employee include those that work for federal, state, or municipality offering:

police protection, firefighting services, or emergency medical services
Federal law enforcement officers, corrections officers and forensic security employees who are employees of state and local governments
Federal customs and border protection officers,
Air traffic controllers,
Nuclear materials couriers,
Members of the United States Capitol Police,
Members of the Supreme Court Police, and
Diplomatic security special agents of the United States Department of State.

Note: Distributions don't have to be from government retirement account: The exception to the 10% additional tax for early distributions applies to distributions made to qualified public safety employees and firefighters covered by private sector retirement plans after separation from service on or after they reach age 50 or with 25 years of service under the plan, whichever is earlier.
Above from PUB 721 and PUB 575

Great Article from Jonlyn & Associates, Inc

Qualified Reservist distributions. A qualified reservist distribution isn’t subject to the additional tax on early distributions. A qualified reservist distribution is a distribution
(a) from elective deferrals under a section 401(k) or 403(b) plan, or a similar arrangement;
(b) to an individual ordered or called to active duty (because they are a member of a reserve component) for a period of more than 179 days or for an indefinite period; and
(c) made during the period beginning on the date of the order or call and ending at the close of the active duty period.

Note: Reservists can choose to recontribute part or all of the distributions to an IRA. If they do, it must be reported on Form 8606 and they can’t take a deduction on their taxes for these contributions. However, the normal dollar limitations for contributions to IRAs don't apply to these special contributions.

Rollovers
When a taxpayer has moved money from one retirement account to another, it generally does not get included as income for the tax year.

See PDF to learn more about what counts as a rollover, and how to make sure we enter it correctly in Taxslayer.

Publix 1099-R and corresponding 1099-B
When a Publix employee or former employee pulls money from their retirement account and its part of the profit sharing account, they generally get 2 tax forms for the same dollar value.

I have seen where both these forms were entered exactly as printed by the tax preparer, resulting in double the amount of income being reported on the return.

Both forms must be entered.
The PDF here shows how to enter both forms correctly so income is not overstated.

**If someone has a 1099-B from Publix without a 1099-R they generally do not show the cost. They can get the cost from their plan manager (my mom gets a letter every year from her financial advisor).

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Retirement income