Table of Contents
Rollover of after-tax contributions. For tax years beginning in 2007, the nontaxable part of an eligible rollover distribution (such as after-tax contributions) from a qualified retirement plan can be rolled over to another qualified retirement plan that is either a qualified employee plan or an annuity contract described in section 403(b). Previously, this part of the distribution could be rolled over only to another qualified retirement plan that was a defined contribution plan. The rollover must be a direct trustee-to-trustee transfer. The plan to which the rollover is made must separately account for these contributions and the earnings on them. See Rollover of nontaxable amounts under Rollovers for more information.
Rollovers by nonspouse beneficiary. For distributions beginning in 2007, a nonspouse designated beneficiary may have a distribution from an eligible retirement plan of a deceased employee directly transferred (trustee-to-trustee) to his or her own IRA set up to receive the distribution. The transfer will be treated as an eligible rollover distribution and the receiving plan will be treated as an inherited IRA. See Rollovers by nonspouse beneficiary under Rollovers, for more information.
Retired public safety officers. For distributions beginning in 2007, an eligible retired public safety officer can elect to exclude from income distributions of up to $3,000 made directly from an eligible retirement plan to the provider of accident, health, or long-term care insurance. See Insurance Premiums for Retired Public Safety Officers under General Information, for more information.
Rollovers to Roth IRAs. After 2007, you can roll over distributions directly from a qualified retirement plan to a Roth IRA if, for the tax year of the distribution, your modified adjusted gross income for Roth IRA purposes is not more than $100,000, and your filing status is not married filing separately. See Rollovers to Roth IRAs, later, for more information.
Hurricane tax relief. Special rules apply to retirement funds received by qualified individuals who suffered an economic loss as a result of Hurricane Katrina, Rita, or Wilma. See Hurricane-Related Relief, for information on these special rules.
Public safety employees. The additional 10% tax on early distributions does not apply to distributions from qualified governmental plans, if you were a public safety employee who separated from service after you reached age 50. See Qualified public safety employees under Tax on Early Distributions, for more information.
Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.
This publication discusses the tax treatment of distributions you receive from pension and annuity plans and also shows you how to report the income on your federal income tax return. How these distributions are taxed depends on whether they are periodic payments (amounts received as an annuity) that are paid at regular intervals over several years or nonperiodic payments (amounts not received as an annuity).
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How to figure the tax-free part of periodic payments under a pension or annuity plan, including using a simple worksheet for payments under a qualified plan.
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How to figure the tax-free part of nonperiodic payments from qualified and nonqualified plans, and how to use the optional methods to figure the tax on lump-sum distributions from pension, stock bonus, and profit-sharing plans.
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How to roll over certain distributions from a retirement plan into another retirement plan or IRA.
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How to report disability payments, and how beneficiaries and survivors of employees and retirees must report benefits paid to them.
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How to report railroad retirement benefits.
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When additional taxes on certain distributions may apply (including the tax on early distributions and the tax on excess accumulation).
For additional information on how to report pension or annuity payments on your federal income tax return, be sure to review the instructions on the back of Copies B, C, and 2 of the Form 1099-R that you received and the instructions for Form 1040, lines 16a and 16b (Form 1040A, lines 12a and 12b or Form 1040NR, lines 17a and 17b).
A “corrected” Form 1099-R replaces the corresponding original Form 1099-R if the original Form 1099-R contained an error. Make sure you use the amounts shown on the corrected Form 1099-R when reporting information on your tax return.
Internal Revenue Service
Individual Forms and Publications Branch
SE:W:CAR:MP:T:I
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224
National Distribution Center
P.O. Box 8903
Bloomington, IL 61702-8903
Publication
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524 Credit for the Elderly or the Disabled
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525 Taxable and Nontaxable Income
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560 Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)
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571 Tax-Sheltered Annuity Plans (403(b) Plans)
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590 Individual Retirement Arrangements (IRAs)
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721 Tax Guide to U.S. Civil Service Retirement Benefits
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915 Social Security and Equivalent Railroad Retirement Benefits
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939 General Rule for Pensions and Annuities
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4492 Information for Taxpayers Affected by Hurricanes Katrina, Rita, and Wilma
Form (and Instructions)
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W-4P
Withholding Certificate for Pension or Annuity Payments -
1099-R
Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. -
4972
Tax on Lump-Sum Distributions -
5329
Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts -
8915
Qualified Hurricane Retirement Plan Distributions and Repayments
See How To Get Tax Help near the end of this publication for information about getting publications and forms.
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