How do I determine the taxability of my retirement benefit?
When you retire, you will be notified of the amount that you contributed to the retirement plan on an "after-tax" basis. This amount also appears on your initial IRS Form 1099R. The amount of money that you contributed to the plan that was subject to tax in the year in which the contributions were made is known as "investment in contract". This amount will include any after-tax payments that you may have made towards the purchase of additional service credit. To determine the tax-free portion of your monthly benefit, you should follow the directions on the IRS 1040 Form under the heading "Pensions & Annuities". You may also obtain the Taxability of Your Retirement Benefit Bulletin (PDF 21KB) from this office. For more information, you should contact the IRS directly or visit their website at: www.irs.gov.
Content Last Modified on 3/20/2013 10:28:27 AM