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1040 Ez 2013

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1040 Ez 2013

1040 ez 2013 10. 1040 ez 2013   Retirement Plans, Pensions, and Annuities Table of Contents What's New Reminder IntroductionThe General Rule. 1040 ez 2013 Individual retirement arrangements (IRAs). 1040 ez 2013 Civil service retirement benefits. 1040 ez 2013 Useful Items - You may want to see: General InformationIn-plan rollovers to designated Roth accounts. 1040 ez 2013 How To Report Cost (Investment in the Contract) Taxation of Periodic PaymentsExclusion limited to cost. 1040 ez 2013 Exclusion not limited to cost. 1040 ez 2013 Simplified Method Taxation of Nonperiodic PaymentsLump-Sum Distributions RolloversIn-plan rollovers to designated Roth accounts. 1040 ez 2013 Special Additional TaxesTax on Early Distributions Tax on Excess Accumulation Survivors and Beneficiaries What's New For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan (for example, 401(a), 403(a), 403(b), 408, 408A, or 457(b) plans). 1040 ez 2013 However, these distributions are taken into account when determining the modified adjusted gross income threshold. 1040 ez 2013 Distributions from a nonqualified retirement plan are included in net investment income. 1040 ez 2013 See Form 8960, Net Investment Income Tax - Individuals, Estates, and Trusts, and its instructions for more information. 1040 ez 2013 Reminder Starting in 2013, the American Taxpayer Relief Act of 2012 expanded the rules for in-plan Roth rollovers to include more taxpayers. 1040 ez 2013 For more information, see Designated Roth accounts discussed later. 1040 ez 2013 Introduction This chapter discusses the tax treatment of distributions you receive from: An employee pension or annuity from a qualified plan, A disability retirement, and A purchased commercial annuity. 1040 ez 2013 What is not covered in this chapter. 1040 ez 2013   The following topics are not discussed in this chapter. 1040 ez 2013 The General Rule. 1040 ez 2013   This is the method generally used to determine the tax treatment of pension and annuity income from nonqualified plans (including commercial annuities). 1040 ez 2013 For a qualified plan, you generally cannot use the General Rule unless your annuity starting date is before November 19, 1996. 1040 ez 2013 For more information about the General Rule, see Publication 939, General Rule for Pensions and Annuities. 1040 ez 2013 Individual retirement arrangements (IRAs). 1040 ez 2013   Information on the tax treatment of amounts you receive from an IRA is in chapter 17. 1040 ez 2013 Civil service retirement benefits. 1040 ez 2013    If you are retired from the federal government (regular, phased, or disability retirement), see Publication 721, Tax Guide to U. 1040 ez 2013 S. 1040 ez 2013 Civil Service Retirement Benefits. 1040 ez 2013 Publication 721 also covers the information that you need if you are the survivor or beneficiary of a federal employee or retiree who died. 1040 ez 2013 Useful Items - You may want to see: Publication 575 Pension and Annuity Income 721 Tax Guide to U. 1040 ez 2013 S. 1040 ez 2013 Civil Service Retirement Benefits 939 General Rule for Pensions and Annuities Form (and Instructions) W-4P Withholding Certificate for Pension or Annuity Payments 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 1040 ez 2013 4972 Tax on Lump-Sum Distributions 5329 Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts General Information Designated Roth accounts. 1040 ez 2013   A designated Roth account is a separate account created under a qualified Roth contribution program to which participants may elect to have part or all of their elective deferrals to a 401(k), 403(b), or 457(b) plan designated as Roth contributions. 1040 ez 2013 Elective deferrals that are designated as Roth contributions are included in your income. 1040 ez 2013 However, qualified distributions are not included in your income. 1040 ez 2013 See Publication 575 for more information. 1040 ez 2013 In-plan rollovers to designated Roth accounts. 1040 ez 2013   If you are a participant in a 401(k), 403(b), or 457(b) plan, your plan may permit you to roll over amounts in those plans to a designated Roth account within the same plan. 1040 ez 2013 The rollover of any untaxed amounts must be included in income. 1040 ez 2013 See Publication 575 for more information. 1040 ez 2013 More than one program. 1040 ez 2013   If you receive benefits from more than one program under a single trust or plan of your employer, such as a pension plan and a profit-sharing plan, you may have to figure the taxable part of each pension or annuity contract separately. 1040 ez 2013 Your former employer or the plan administrator should be able to tell you if you have more than one pension or annuity contract. 1040 ez 2013 Section 457 deferred compensation plans. 1040 ez 2013    If you work for a state or local government or for a tax-exempt organization, you may be able to participate in a section 457 deferred compensation plan. 1040 ez 2013 If your plan is an eligible plan, you are not taxed currently on pay that is deferred under the plan or on any earnings from the plan's investment of the deferred pay. 1040 ez 2013 You are generally taxed on amounts deferred in an eligible state or local government plan only when they are distributed from the plan. 1040 ez 2013 You are taxed on amounts deferred in an eligible tax-exempt organization plan when they are distributed or otherwise made available to you. 1040 ez 2013   Your 457(b) plan may have a designated Roth account option. 1040 ez 2013 If so, you may be able to roll over amounts to the designated Roth account or make contributions. 1040 ez 2013 Elective deferrals to a designated Roth account are included in your income. 1040 ez 2013 Qualified distributions from a designated Roth account are not subject to tax. 1040 ez 2013   This chapter covers the tax treatment of benefits under eligible section 457 plans, but it does not cover the treatment of deferrals. 1040 ez 2013 For information on deferrals under section 457 plans, see Retirement Plan Contributions under Employee Compensation in Publication 525, Taxable and Nontaxable Income. 1040 ez 2013   For general information on these deferred compensation plans, see Section 457 Deferred Compensation Plans in Publication 575. 1040 ez 2013 Disability pensions. 1040 ez 2013   If you retired on disability, you generally must include in income any disability pension you receive under a plan that is paid for by your employer. 1040 ez 2013 You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A until you reach minimum retirement age. 1040 ez 2013 Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. 1040 ez 2013    You may be entitled to a tax credit if you were permanently and totally disabled when you retired. 1040 ez 2013 For information on the credit for the elderly or the disabled, see chapter 33. 1040 ez 2013   Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. 1040 ez 2013 Report the payments on Form 1040, lines 16a and 16b, or on Form 1040A, lines 12a and 12b. 1040 ez 2013    Disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States (or its allies) are not included in income. 1040 ez 2013 For more information about payments to survivors of terrorist attacks, see Publication 3920, Tax Relief for Victims of Terrorist Attacks. 1040 ez 2013   For more information on how to report disability pensions, including military and certain government disability pensions, see chapter 5. 1040 ez 2013 Retired public safety officers. 1040 ez 2013   An eligible retired public safety officer can elect to exclude from income distributions of up to $3,000 made directly from a government retirement plan to the provider of accident, health, or long-term disability insurance. 1040 ez 2013 See Insurance Premiums for Retired Public Safety Officers in Publication 575 for more information. 1040 ez 2013 Railroad retirement benefits. 1040 ez 2013   Part of any railroad retirement benefits you receive is treated for tax purposes as social security benefits, and part is treated as an employee pension. 1040 ez 2013 For information about railroad retirement benefits treated as social security benefits, see Publication 915, Social Security and Equivalent Railroad Retirement Benefits. 1040 ez 2013 For information about railroad retirement benefits treated as an employee pension, see Railroad Retirement Benefits in Publication 575. 1040 ez 2013 Withholding and estimated tax. 1040 ez 2013   The payer of your pension, profit-sharing, stock bonus, annuity, or deferred compensation plan will withhold income tax on the taxable parts of amounts paid to you. 1040 ez 2013 You can tell the payer how much to withhold, or not to withhold, by filing Form W-4P. 1040 ez 2013 If you choose not to have tax withheld, or you do not have enough tax withheld, you may have to pay estimated tax. 1040 ez 2013   If you receive an eligible rollover distribution, you cannot choose not to have tax withheld. 1040 ez 2013 Generally, 20% will be withheld, but no tax will be withheld on a direct rollover of an eligible rollover distribution. 1040 ez 2013 See Direct rollover option under Rollovers, later. 1040 ez 2013   For more information, see Pensions and Annuities under Tax Withholding for 2014 in chapter 4. 1040 ez 2013 Qualified plans for self-employed individuals. 1040 ez 2013   Qualified plans set up by self-employed individuals are sometimes called Keogh or H. 1040 ez 2013 R. 1040 ez 2013 10 plans. 1040 ez 2013 Qualified plans can be set up by sole proprietors, partnerships (but not a partner), and corporations. 1040 ez 2013 They can cover self-employed persons, such as the sole proprietor or partners, as well as regular (common-law) employees. 1040 ez 2013    Distributions from a qualified plan are usually fully taxable because most recipients have no cost basis. 1040 ez 2013 If you have an investment (cost) in the plan, however, your pension or annuity payments from a qualified plan are taxed under the Simplified Method. 1040 ez 2013 For more information about qualified plans, see Publication 560, Retirement Plans for Small Business. 1040 ez 2013 Purchased annuities. 1040 ez 2013   If you receive pension or annuity payments from a privately purchased annuity contract from a commercial organization, such as an insurance company, you generally must use the General Rule to figure the tax-free part of each annuity payment. 1040 ez 2013 For more information about the General Rule, get Publication 939. 1040 ez 2013 Also, see Variable Annuities in Publication 575 for the special provisions that apply to these annuity contracts. 1040 ez 2013 Loans. 1040 ez 2013   If you borrow money from your retirement plan, you must treat the loan as a nonperiodic distribution from the plan unless certain exceptions apply. 1040 ez 2013 This treatment also applies to any loan under a contract purchased under your retirement plan, and to the value of any part of your interest in the plan or contract that you pledge or assign. 1040 ez 2013 This means that you must include in income all or part of the amount borrowed. 1040 ez 2013 Even if you do not have to treat the loan as a nonperiodic distribution, you may not be able to deduct the interest on the loan in some situations. 1040 ez 2013 For details, see Loans Treated as Distributions in Publication 575. 1040 ez 2013 For information on the deductibility of interest, see chapter 23. 1040 ez 2013 Tax-free exchange. 1040 ez 2013   No gain or loss is recognized on an exchange of an annuity contract for another annuity contract if the insured or annuitant remains the same. 1040 ez 2013 However, if an annuity contract is exchanged for a life insurance or endowment contract, any gain due to interest accumulated on the contract is ordinary income. 1040 ez 2013 See Transfers of Annuity Contracts in Publication 575 for more information about exchanges of annuity contracts. 1040 ez 2013 How To Report If you file Form 1040, report your total annuity on line 16a and the taxable part on line 16b. 1040 ez 2013 If your pension or annuity is fully taxable, enter it on line 16b; do not make an entry on line 16a. 1040 ez 2013 If you file Form 1040A, report your total annuity on line 12a and the taxable part on line 12b. 1040 ez 2013 If your pension or annuity is fully taxable, enter it on line 12b; do not make an entry on line 12a. 1040 ez 2013 More than one annuity. 1040 ez 2013   If you receive more than one annuity and at least one of them is not fully taxable, enter the total amount received from all annuities on Form 1040, line 16a, or Form 1040A, line 12a, and enter the taxable part on Form 1040, line 16b, or Form 1040A, line 12b. 1040 ez 2013 If all the annuities you receive are fully taxable, enter the total of all of them on Form 1040, line 16b, or Form 1040A, line 12b. 1040 ez 2013 Joint return. 1040 ez 2013   If you file a joint return and you and your spouse each receive one or more pensions or annuities, report the total of the pensions and annuities on Form 1040, line 16a, or Form 1040A, line 12a, and report the taxable part on Form 1040, line 16b, or Form 1040A, line 12b. 1040 ez 2013 Cost (Investment in the Contract) Before you can figure how much, if any, of a distribution from your pension or annuity plan is taxable, you must determine your cost (your investment in the contract) in the pension or annuity. 1040 ez 2013 Your total cost in the plan includes the total premiums, contributions, or other amounts you paid. 1040 ez 2013 This includes the amounts your employer contributed that were taxable to you when paid. 1040 ez 2013 Cost does not include any amounts you deducted or were excluded from your income. 1040 ez 2013 From this total cost, subtract any refunds of premiums, rebates, dividends, unrepaid loans that were not included in your income, or other tax-free amounts that you received by the later of the annuity starting date or the date on which you received your first payment. 1040 ez 2013 Your annuity starting date is the later of the first day of the first period for which you received a payment or the date the plan's obligations became fixed. 1040 ez 2013 Designated Roth accounts. 1040 ez 2013   Your cost in these accounts is your designated Roth contributions that were included in your income as wages subject to applicable withholding requirements. 1040 ez 2013 Your cost will also include any in-plan Roth rollovers you included in income. 1040 ez 2013 Foreign employment contributions. 1040 ez 2013   If you worked in a foreign country and contributions were made to your retirement plan, special rules apply in determining your cost. 1040 ez 2013 See Foreign employment contributions under Cost (Investment in the Contract) in Publication 575. 1040 ez 2013 Taxation of Periodic Payments Fully taxable payments. 1040 ez 2013   Generally, if you did not pay any part of the cost of your employee pension or annuity and your employer did not withhold part of the cost from your pay while you worked, the amounts you receive each year are fully taxable. 1040 ez 2013 You must report them on your income tax return. 1040 ez 2013 Partly taxable payments. 1040 ez 2013   If you paid part of the cost of your pension or annuity, you are not taxed on the part of the pension or annuity you receive that represents a return of your cost. 1040 ez 2013 The rest of the amount you receive is generally taxable. 1040 ez 2013 You figure the tax-free part of the payment using either the Simplified Method or the General Rule. 1040 ez 2013 Your annuity starting date and whether or not your plan is qualified determine which method you must or may use. 1040 ez 2013   If your annuity starting date is after November 18, 1996, and your payments are from a qualified plan, you must use the Simplified Method. 1040 ez 2013 Generally, you must use the General Rule if your annuity is paid under a nonqualified plan, and you cannot use this method if your annuity is paid under a qualified plan. 1040 ez 2013   If you had more than one partly taxable pension or annuity, figure the tax-free part and the taxable part of each separately. 1040 ez 2013   If your annuity is paid under a qualified plan and your annuity starting date is after July 1, 1986, and before November 19, 1996, you could have chosen to use either the General Rule or the Simplified Method. 1040 ez 2013 Exclusion limit. 1040 ez 2013   Your annuity starting date determines the total amount of annuity payments that you can exclude from your taxable income over the years. 1040 ez 2013 Once your annuity starting date is determined, it does not change. 1040 ez 2013 If you calculate the taxable portion of your annuity payments using the simplified method worksheet, the annuity starting date determines the recovery period for your cost. 1040 ez 2013 That recovery period begins on your annuity starting date and is not affected by the date you first complete the worksheet. 1040 ez 2013 Exclusion limited to cost. 1040 ez 2013   If your annuity starting date is after 1986, the total amount of annuity income that you can exclude over the years as a recovery of the cost cannot exceed your total cost. 1040 ez 2013 Any unrecovered cost at your (or the last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. 1040 ez 2013 This deduction is not subject to the 2%-of-adjusted-gross-income limit. 1040 ez 2013 Exclusion not limited to cost. 1040 ez 2013   If your annuity starting date is before 1987, you can continue to take your monthly exclusion for as long as you receive your annuity. 1040 ez 2013 If you chose a joint and survivor annuity, your survivor can continue to take the survivor's exclusion figured as of the annuity starting date. 1040 ez 2013 The total exclusion may be more than your cost. 1040 ez 2013 Simplified Method Under the Simplified Method, you figure the tax-free part of each annuity payment by dividing your cost by the total number of anticipated monthly payments. 1040 ez 2013 For an annuity that is payable for the lives of the annuitants, this number is based on the annuitants' ages on the annuity starting date and is determined from a table. 1040 ez 2013 For any other annuity, this number is the number of monthly annuity payments under the contract. 1040 ez 2013 Who must use the Simplified Method. 1040 ez 2013   You must use the Simplified Method if your annuity starting date is after November 18, 1996, and you both: Receive pension or annuity payments from a qualified employee plan, qualified employee annuity, or a tax-sheltered annuity (403(b)) plan, and On your annuity starting date, you were either under age 75, or entitled to less than 5 years of guaranteed payments. 1040 ez 2013 Guaranteed payments. 1040 ez 2013   Your annuity contract provides guaranteed payments if a minimum number of payments or a minimum amount (for example, the amount of your investment) is payable even if you and any survivor annuitant do not live to receive the minimum. 1040 ez 2013 If the minimum amount is less than the total amount of the payments you are to receive, barring death, during the first 5 years after payments begin (figured by ignoring any payment increases), you are entitled to less than 5 years of guaranteed payments. 1040 ez 2013 How to use the Simplified Method. 1040 ez 2013    Complete the Simplified Method Worksheet in Publication 575 to figure your taxable annuity for 2013. 1040 ez 2013 Single-life annuity. 1040 ez 2013    If your annuity is payable for your life alone, use Table 1 at the bottom of the worksheet to determine the total number of expected monthly payments. 1040 ez 2013 Enter on line 3 the number shown for your age at the annuity starting date. 1040 ez 2013 Multiple-lives annuity. 1040 ez 2013   If your annuity is payable for the lives of more than one annuitant, use Table 2 at the bottom of the worksheet to determine the total number of expected monthly payments. 1040 ez 2013 Enter on line 3 the number shown for the combined ages of you and the youngest survivor annuitant at the annuity starting date. 1040 ez 2013   However, if your annuity starting date is before 1998, do not use Table 2 and do not combine the annuitants' ages. 1040 ez 2013 Instead you must use Table 1 and enter on line 3 the number shown for the primary annuitant's age on the annuity starting date. 1040 ez 2013    Be sure to keep a copy of the completed worksheet; it will help you figure your taxable annuity next year. 1040 ez 2013 Example. 1040 ez 2013 Bill Smith, age 65, began receiving retirement benefits in 2013, under a joint and survivor annuity. 1040 ez 2013 Bill's annuity starting date is January 1, 2013. 1040 ez 2013 The benefits are to be paid for the joint lives of Bill and his wife Kathy, age 65. 1040 ez 2013 Bill had contributed $31,000 to a qualified plan and had received no distributions before the annuity starting date. 1040 ez 2013 Bill is to receive a retirement benefit of $1,200 a month, and Kathy is to receive a monthly survivor benefit of $600 upon Bill's death. 1040 ez 2013 Bill must use the Simplified Method to figure his taxable annuity because his payments are from a qualified plan and he is under age 75. 1040 ez 2013 Because his annuity is payable over the lives of more than one annuitant, he uses his and Kathy's combined ages and Table 2 at the bottom of the worksheet in completing line 3 of the worksheet. 1040 ez 2013 His completed worksheet is shown in Worksheet 10-A. 1040 ez 2013 Bill's tax-free monthly amount is $100 ($31,000 ÷ 310) as shown on line 4 of the worksheet. 1040 ez 2013 Upon Bill's death, if Bill has not recovered the full $31,000 investment, Kathy will also exclude $100 from her $600 monthly payment. 1040 ez 2013 The full amount of any annuity payments received after 310 payments are paid must be included in gross income. 1040 ez 2013 If Bill and Kathy die before 310 payments are made, a miscellaneous itemized deduction will be allowed for the unrecovered cost on the final income tax return of the last to die. 1040 ez 2013 This deduction is not subject to the 2%-of-adjusted- gross-income limit. 1040 ez 2013 Worksheet 10-A. 1040 ez 2013 Simplified Method Worksheet for Bill Smith 1. 1040 ez 2013 Enter the total pension or annuity payments received this year. 1040 ez 2013 Also, add this amount to the total for Form 1040, line 16a, or Form 1040A, line 12a 1. 1040 ez 2013 14,400 2. 1040 ez 2013 Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion*. 1040 ez 2013 See Cost (Investment in the Contract) , earlier 2. 1040 ez 2013 31,000       Note: If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). 1040 ez 2013 Otherwise, go to line 3. 1040 ez 2013         3. 1040 ez 2013 Enter the appropriate number from Table 1 below. 1040 ez 2013 But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below 3. 1040 ez 2013 310     4. 1040 ez 2013 Divide line 2 by the number on line 3 4. 1040 ez 2013 100     5. 1040 ez 2013 Multiply line 4 by the number of months for which this year's payments were made. 1040 ez 2013 If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. 1040 ez 2013 Otherwise, go to line 6 5. 1040 ez 2013 1,200     6. 1040 ez 2013 Enter any amounts previously recovered tax free in years after 1986. 1040 ez 2013 This is the amount shown on line 10 of your worksheet for last year 6. 1040 ez 2013 -0-     7. 1040 ez 2013 Subtract line 6 from line 2 7. 1040 ez 2013 31,000     8. 1040 ez 2013 Enter the smaller of line 5 or line 7 8. 1040 ez 2013 1,200 9. 1040 ez 2013 Taxable amount for year. 1040 ez 2013 Subtract line 8 from line 1. 1040 ez 2013 Enter the result, but not less than zero. 1040 ez 2013 Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b 9. 1040 ez 2013 13,200   Note: If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. 1040 ez 2013 If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers in Publication 575 before entering an amount on your tax return. 1040 ez 2013     10. 1040 ez 2013 Was your annuity starting date before 1987? □ Yes. 1040 ez 2013 STOP. 1040 ez 2013 Do not complete the rest of this worksheet. 1040 ez 2013  ☑ No. 1040 ez 2013 Add lines 6 and 8. 1040 ez 2013 This is the amount you have recovered tax free through 2013. 1040 ez 2013 You will need this number if you need to fill out this worksheet next year 10. 1040 ez 2013 1,200 11. 1040 ez 2013 Balance of cost to be recovered. 1040 ez 2013 Subtract line 10 from line 2. 1040 ez 2013 If zero, you will not have to complete this worksheet next year. 1040 ez 2013 The payments you receive next year will generally be fully taxable 11. 1040 ez 2013 29,800 TABLE 1 FOR LINE 3 ABOVE   AND your annuity starting date was— IF the age at annuity starting date was. 1040 ez 2013 . 1040 ez 2013 . 1040 ez 2013 before November 19, 1996, enter on line 3. 1040 ez 2013 . 1040 ez 2013 . 1040 ez 2013 after November 18, 1996, enter on line 3. 1040 ez 2013 . 1040 ez 2013 . 1040 ez 2013 55 or under 300 360 56–60 260 310 61–65 240 260 66–70 170 210 71 or older 120 160 TABLE 2 FOR LINE 3 ABOVE IF the combined ages at annuity starting date were. 1040 ez 2013 . 1040 ez 2013 . 1040 ez 2013   THEN enter on line 3. 1040 ez 2013 . 1040 ez 2013 . 1040 ez 2013 110 or under   410 111–120   360 121–130   310 131–140   260 141 or older   210 * A death benefit exclusion (up to $5,000) applied to certain benefits received by employees who died before August 21, 1996. 1040 ez 2013 Who must use the General Rule. 1040 ez 2013   You must use the General Rule if you receive pension or annuity payments from: A nonqualified plan (such as a private annuity, a purchased commercial annuity, or a nonqualified employee plan), or A qualified plan if you are age 75 or older on your annuity starting date and your annuity payments are guaranteed for at least 5 years. 1040 ez 2013 Annuity starting before November 19, 1996. 1040 ez 2013   If your annuity starting date is after July 1, 1986, and before November 19, 1996, you had to use the General Rule for either circumstance just described. 1040 ez 2013 You also had to use it for any fixed-period annuity. 1040 ez 2013 If you did not have to use the General Rule, you could have chosen to use it. 1040 ez 2013 If your annuity starting date is before July 2, 1986, you had to use the General Rule unless you could use the Three-Year Rule. 1040 ez 2013   If you had to use the General Rule (or chose to use it), you must continue to use it each year that you recover your cost. 1040 ez 2013 Who cannot use the General Rule. 1040 ez 2013   You cannot use the General Rule if you receive your pension or annuity from a qualified plan and none of the circumstances described in the preceding discussions apply to you. 1040 ez 2013 See Who must use the Simplified Method , earlier. 1040 ez 2013 More information. 1040 ez 2013   For complete information on using the General Rule, including the actuarial tables you need, see Publication 939. 1040 ez 2013 Taxation of Nonperiodic Payments Nonperiodic distributions are also known as amounts not received as an annuity. 1040 ez 2013 They include all payments other than periodic payments and corrective distributions. 1040 ez 2013 Examples of nonperiodic payments are cash withdrawals, distributions of current earnings, certain loans, and the value of annuity contracts transferred without full and adequate consideration. 1040 ez 2013 Corrective distributions of excess plan contributions. 1040 ez 2013   Generally, if the contributions made for you during the year to certain retirement plans exceed certain limits, the excess is taxable to you. 1040 ez 2013 To correct an excess, your plan may distribute it to you (along with any income earned on the excess). 1040 ez 2013 For information on plan contribution limits and how to report corrective distributions of excess contributions, see Retirement Plan Contributions under Employee Compensation in Publication 525. 1040 ez 2013 Figuring the taxable amount of nonperiodic payments. 1040 ez 2013   How you figure the taxable amount of a nonperiodic distribution depends on whether it is made before the annuity starting date, or on or after the annuity starting date. 1040 ez 2013 If it is made before the annuity starting date, its tax treatment also depends on whether it is made under a qualified or nonqualified plan. 1040 ez 2013 If it is made under a nonqualified plan, its tax treatment depends on whether it fully discharges the contract, is received under certain life insurance or endowment contracts, or is allocable to an investment you made before August 14, 1982. 1040 ez 2013 Annuity starting date. 1040 ez 2013   The annuity starting date is either the first day of the first period for which you receive an annuity payment under the contract or the date on which the obligation under the contract becomes fixed, whichever is later. 1040 ez 2013 Distribution on or after annuity starting date. 1040 ez 2013   If you receive a nonperiodic payment from your annuity contract on or after the annuity starting date, you generally must include all of the payment in gross income. 1040 ez 2013 Distribution before annuity starting date. 1040 ez 2013   If you receive a nonperiodic distribution before the annuity starting date from a qualified retirement plan, you generally can allocate only part of it to the cost of the contract. 1040 ez 2013 You exclude from your gross income the part that you allocate to the cost. 1040 ez 2013 You include the remainder in your gross income. 1040 ez 2013   If you receive a nonperiodic distribution before the annuity starting date from a plan other than a qualified retirement plan (nonqualified plan), it is allocated first to earnings (the taxable part) and then to the cost of the contract (the tax-free part). 1040 ez 2013 This allocation rule applies, for example, to a commercial annuity contract you bought directly from the issuer. 1040 ez 2013    Distributions from nonqualified plans are subject to the net investment income tax. 1040 ez 2013 See the Instructions for Form 8960. 1040 ez 2013   For more information, see Figuring the Taxable Amount under Taxation of Nonperiodic Payments in Publication 575. 1040 ez 2013 Lump-Sum Distributions This section on lump-sum distributions only applies if the plan participant was born before January 2, 1936. 1040 ez 2013 If the plan participant was born after January 1, 1936, the taxable amount of this nonperiodic payment is reported as discussed earlier. 1040 ez 2013 A lump-sum distribution is the distribution or payment in one tax year of a plan participant's entire balance from all of the employer's qualified plans of one kind (for example, pension, profit-sharing, or stock bonus plans). 1040 ez 2013 A distribution from a nonqualified plan (such as a privately purchased commercial annuity or a section 457 deferred compensation plan of a state or local government or tax-exempt organization) cannot qualify as a lump-sum distribution. 1040 ez 2013 The participant's entire balance from a plan does not include certain forfeited amounts. 1040 ez 2013 It also does not include any deductible voluntary employee contributions allowed by the plan after 1981 and before 1987. 1040 ez 2013 For more information about distributions that do not qualify as lump-sum distributions, see Distributions that do not qualify under Lump-Sum Distributions in Publication 575. 1040 ez 2013 If you receive a lump-sum distribution from a qualified employee plan or qualified employee annuity and the plan participant was born before January 2, 1936, you may be able to elect optional methods of figuring the tax on the distribution. 1040 ez 2013 The part from active participation in the plan before 1974 may qualify as capital gain subject to a 20% tax rate. 1040 ez 2013 The part from participation after 1973 (and any part from participation before 1974 that you do not report as capital gain) is ordinary income. 1040 ez 2013 You may be able to use the 10-year tax option, discussed later, to figure tax on the ordinary income part. 1040 ez 2013 Use Form 4972 to figure the separate tax on a lump-sum distribution using the optional methods. 1040 ez 2013 The tax figured on Form 4972 is added to the regular tax figured on your other income. 1040 ez 2013 This may result in a smaller tax than you would pay by including the taxable amount of the distribution as ordinary income in figuring your regular tax. 1040 ez 2013 How to treat the distribution. 1040 ez 2013   If you receive a lump-sum distribution, you may have the following options for how you treat the taxable part. 1040 ez 2013 Report the part of the distribution from participation before 1974 as a capital gain (if you qualify) and the part from participation after 1973 as ordinary income. 1040 ez 2013 Report the part of the distribution from participation before 1974 as a capital gain (if you qualify) and use the 10-year tax option to figure the tax on the part from participation after 1973 (if you qualify). 1040 ez 2013 Use the 10-year tax option to figure the tax on the total taxable amount (if you qualify). 1040 ez 2013 Roll over all or part of the distribution. 1040 ez 2013 See Rollovers , later. 1040 ez 2013 No tax is currently due on the part rolled over. 1040 ez 2013 Report any part not rolled over as ordinary income. 1040 ez 2013 Report the entire taxable part of the distribution as ordinary income on your tax return. 1040 ez 2013   The first three options are explained in the following discussions. 1040 ez 2013 Electing optional lump-sum treatment. 1040 ez 2013   You can choose to use the 10-year tax option or capital gain treatment only once after 1986 for any plan participant. 1040 ez 2013 If you make this choice, you cannot use either of these optional treatments for any future distributions for the participant. 1040 ez 2013 Taxable and tax-free parts of the distribution. 1040 ez 2013    The taxable part of a lump-sum distribution is the employer's contributions and income earned on your account. 1040 ez 2013 You may recover your cost in the lump sum and any net unrealized appreciation (NUA) in employer securities tax free. 1040 ez 2013 Cost. 1040 ez 2013   In general, your cost is the total of: The plan participant's nondeductible contributions to the plan, The plan participant's taxable costs of any life insurance contract distributed, Any employer contributions that were taxable to the plan participant, and Repayments of any loans that were taxable to the plan participant. 1040 ez 2013 You must reduce this cost by amounts previously distributed tax free. 1040 ez 2013 Net unrealized appreciation (NUA). 1040 ez 2013   The NUA in employer securities (box 6 of Form 1099-R) received as part of a lump-sum distribution is generally tax free until you sell or exchange the securities. 1040 ez 2013 (For more information, see Distributions of employer securities under Taxation of Nonperiodic Payments in Publication 575. 1040 ez 2013 ) Capital Gain Treatment Capital gain treatment applies only to the taxable part of a lump-sum distribution resulting from participation in the plan before 1974. 1040 ez 2013 The amount treated as capital gain is taxed at a 20% rate. 1040 ez 2013 You can elect this treatment only once for any plan participant, and only if the plan participant was born before January 2, 1936. 1040 ez 2013 Complete Part II of Form 4972 to choose the 20% capital gain election. 1040 ez 2013 For more information, see Capital Gain Treatment under Lump-Sum Distributions in Publication 575. 1040 ez 2013 10-Year Tax Option The 10-year tax option is a special formula used to figure a separate tax on the ordinary income part of a lump-sum distribution. 1040 ez 2013 You pay the tax only once, for the year in which you receive the distribution, not over the next 10 years. 1040 ez 2013 You can elect this treatment only once for any plan participant, and only if the plan participant was born before January 2, 1936. 1040 ez 2013 The ordinary income part of the distribution is the amount shown in box 2a of the Form 1099-R given to you by the payer, minus the amount, if any, shown in box 3. 1040 ez 2013 You also can treat the capital gain part of the distribution (box 3 of Form 1099-R) as ordinary income for the 10-year tax option if you do not choose capital gain treatment for that part. 1040 ez 2013 Complete Part III of Form 4972 to choose the 10-year tax option. 1040 ez 2013 You must use the special Tax Rate Schedule shown in the instructions for Part III to figure the tax. 1040 ez 2013 Publication 575 illustrates how to complete Form 4972 to figure the separate tax. 1040 ez 2013 Rollovers If you withdraw cash or other assets from a qualified retirement plan in an eligible rollover distribution, you can defer tax on the distribution by rolling it over to another qualified retirement plan or a traditional IRA. 1040 ez 2013 For this purpose, the following plans are qualified retirement plans. 1040 ez 2013 A qualified employee plan. 1040 ez 2013 A qualified employee annuity. 1040 ez 2013 A tax-sheltered annuity plan (403(b) plan). 1040 ez 2013 An eligible state or local government section 457 deferred compensation plan. 1040 ez 2013 Eligible rollover distributions. 1040 ez 2013   Generally, an eligible rollover distribution is any distribution of all or any part of the balance to your credit in a qualified retirement plan. 1040 ez 2013 For information about exceptions to eligible rollover distributions, see Publication 575. 1040 ez 2013 Rollover of nontaxable amounts. 1040 ez 2013   You may be able to roll over the nontaxable part of a distribution (such as your after-tax contributions) made to another qualified retirement plan that is a qualified employee plan or a 403(b) plan, or to a traditional or Roth IRA. 1040 ez 2013 The transfer must be made either through a direct rollover to a qualified plan or 403(b) plan that separately accounts for the taxable and nontaxable parts of the rollover or through a rollover to a traditional or Roth IRA. 1040 ez 2013   If you roll over only part of a distribution that includes both taxable and nontaxable amounts, the amount you roll over is treated as coming first from the taxable part of the distribution. 1040 ez 2013   Any after-tax contributions that you roll over into your traditional IRA become part of your basis (cost) in your IRAs. 1040 ez 2013 To recover your basis when you take distributions from your IRA, you must complete Form 8606 for the year of the distribution. 1040 ez 2013 For more information, see the Form 8606 instructions. 1040 ez 2013 Direct rollover option. 1040 ez 2013   You can choose to have any part or all of an eligible rollover distribution paid directly to another qualified retirement plan that accepts rollover distributions or to a traditional or Roth IRA. 1040 ez 2013 If you choose the direct rollover option, or have an automatic rollover, no tax will be withheld from any part of the distribution that is directly paid to the trustee of the other plan. 1040 ez 2013 Payment to you option. 1040 ez 2013   If an eligible rollover distribution is paid to you, 20% generally will be withheld for income tax. 1040 ez 2013 However, the full amount is treated as distributed to you even though you actually receive only 80%. 1040 ez 2013 You generally must include in income any part (including the part withheld) that you do not roll over within 60 days to another qualified retirement plan or to a traditional or Roth IRA. 1040 ez 2013 (See Pensions and Annuities under Tax Withholding for 2014 in chapter 4. 1040 ez 2013 )    If you decide to roll over an amount equal to the distribution before withholding, your contribution to the new plan or IRA must include other money (for example, from savings or amounts borrowed) to replace the amount withheld. 1040 ez 2013 Time for making rollover. 1040 ez 2013   You generally must complete the rollover of an eligible rollover distribution paid to you by the 60th day following the day on which you receive the distribution from your employer's plan. 1040 ez 2013 (If an amount distributed to you becomes a frozen deposit in a financial institution during the 60-day period after you receive it, the rollover period is extended for the period during which the distribution is in a frozen deposit in a financial institution. 1040 ez 2013 )   The IRS may waive the 60-day requirement where the failure to do so would be against equity or good conscience, such as in the event of a casualty, disaster, or other event beyond your reasonable control. 1040 ez 2013   The administrator of a qualified plan must give you a written explanation of your distribution options within a reasonable period of time before making an eligible rollover distribution. 1040 ez 2013 Qualified domestic relations order (QDRO). 1040 ez 2013   You may be able to roll over tax free all or part of a distribution from a qualified retirement plan that you receive under a QDRO. 1040 ez 2013 If you receive the distribution as an employee's spouse or former spouse (not as a nonspousal beneficiary), the rollover rules apply to you as if you were the employee. 1040 ez 2013 You can roll over the distribution from the plan into a traditional IRA or to another eligible retirement plan. 1040 ez 2013 See Rollovers in Publication 575 for more information on benefits received under a QDRO. 1040 ez 2013 Rollover by surviving spouse. 1040 ez 2013   You may be able to roll over tax free all or part of a distribution from a qualified retirement plan you receive as the surviving spouse of a deceased employee. 1040 ez 2013 The rollover rules apply to you as if you were the employee. 1040 ez 2013 You can roll over a distribution into a qualified retirement plan or a traditional or Roth IRA. 1040 ez 2013 For a rollover to a Roth IRA, see Rollovers to Roth IRAs , later. 1040 ez 2013    A distribution paid to a beneficiary other than the employee's surviving spouse is generally not an eligible rollover distribution. 1040 ez 2013 However, see Rollovers by nonspouse beneficiary next. 1040 ez 2013 Rollovers by nonspouse beneficiary. 1040 ez 2013   If you are a designated beneficiary (other than a surviving spouse) of a deceased employee, you may be able to roll over tax free all or a portion of a distribution you receive from an eligible retirement plan of the employee. 1040 ez 2013 The distribution must be a direct trustee-to-trustee transfer to your traditional or Roth IRA that was set up to receive the distribution. 1040 ez 2013 The transfer will be treated as an eligible rollover distribution and the receiving plan will be treated as an inherited IRA. 1040 ez 2013 For information on inherited IRAs, see What if You Inherit an IRA? in chapter 1 of Publication 590, Individual Retirement Arrangements (IRAs). 1040 ez 2013 Retirement bonds. 1040 ez 2013   If you redeem retirement bonds purchased under a qualified bond purchase plan, you can roll over the proceeds that exceed your basis tax free into an IRA (as discussed in Publication 590) or a qualified employer plan. 1040 ez 2013 Designated Roth accounts. 1040 ez 2013   You can roll over an eligible rollover distribution from a designated Roth account into another designated Roth account or a Roth IRA. 1040 ez 2013 If you want to roll over the part of the distribution that is not included in income, you must make a direct rollover of the entire distribution or you can roll over the entire amount (or any portion) to a Roth IRA. 1040 ez 2013 For more information on rollovers from designated Roth accounts, see Rollovers in Publication 575. 1040 ez 2013 In-plan rollovers to designated Roth accounts. 1040 ez 2013   If you are a plan participant in a 401(k), 403(b), or 457(b) plan, your plan may permit you to roll over amounts in those plans to a designated Roth account within the same plan. 1040 ez 2013 The rollover of any untaxed amounts must be included in income. 1040 ez 2013 See Designated Roth accounts under Rollovers in Publication 575 for more information. 1040 ez 2013 Rollovers to Roth IRAs. 1040 ez 2013   You can roll over distributions directly from a qualified retirement plan (other than a designated Roth account) to a Roth IRA. 1040 ez 2013   You must include in your gross income distributions from a qualified retirement plan (other than a designated Roth account) that you would have had to include in income if you had not rolled them over into a Roth IRA. 1040 ez 2013 You do not include in gross income any part of a distribution from a qualified retirement plan that is a return of contributions to the plan that were taxable to you when paid. 1040 ez 2013 In addition, the 10% tax on early distributions does not apply. 1040 ez 2013 More information. 1040 ez 2013   For more information on the rules for rolling over distributions, see Rollovers in Publication 575. 1040 ez 2013 Special Additional Taxes To discourage the use of pension funds for purposes other than normal retirement, the law imposes additional taxes on early distributions of those funds and on failures to withdraw the funds timely. 1040 ez 2013 Ordinarily, you will not be subject to these taxes if you roll over all early distributions you receive, as explained earlier, and begin drawing out the funds at a normal retirement age, in reasonable amounts over your life expectancy. 1040 ez 2013 These special additional taxes are the taxes on: Early distributions, and Excess accumulation (not receiving minimum distributions). 1040 ez 2013 These taxes are discussed in the following sections. 1040 ez 2013 If you must pay either of these taxes, report them on Form 5329. 1040 ez 2013 However, you do not have to file Form 5329 if you owe only the tax on early distributions and your Form 1099-R correctly shows a “1” in box 7. 1040 ez 2013 Instead, enter 10% of the taxable part of the distribution on Form 1040, line 58 and write “No” under the heading “Other Taxes” to the left of line 58. 1040 ez 2013 Even if you do not owe any of these taxes, you may have to complete Form 5329 and attach it to your Form 1040. 1040 ez 2013 This applies if you meet an exception to the tax on early distributions but box 7 of your Form 1099-R does not indicate an exception. 1040 ez 2013 Tax on Early Distributions Most distributions (both periodic and nonperiodic) from qualified retirement plans and nonqualified annuity contracts made to you before you reach age 59½ are subject to an additional tax of 10%. 1040 ez 2013 This tax applies to the part of the distribution that you must include in gross income. 1040 ez 2013 For this purpose, a qualified retirement plan is: A qualified employee plan, A qualified employee annuity plan, A tax-sheltered annuity plan, or An eligible state or local government section 457 deferred compensation plan (to the extent that any distribution is attributable to amounts the plan received in a direct transfer or rollover from one of the other plans listed here or an IRA). 1040 ez 2013 5% rate on certain early distributions from deferred annuity contracts. 1040 ez 2013   If an early withdrawal from a deferred annuity is otherwise subject to the 10% additional tax, a 5% rate may apply instead. 1040 ez 2013 A 5% rate applies to distributions under a written election providing a specific schedule for the distribution of your interest in the contract if, as of March 1, 1986, you had begun receiving payments under the election. 1040 ez 2013 On line 4 of Form 5329, multiply the line 3 amount by 5% instead of 10%. 1040 ez 2013 Attach an explanation to your return. 1040 ez 2013 Distributions from Roth IRAs allocable to a rollover from an eligible retirement plan within the 5-year period. 1040 ez 2013   If, within the 5-year period starting with the first day of your tax year in which you rolled over an amount from an eligible retirement plan to a Roth IRA, you take a distribution from the Roth IRA, you may have to pay the additional 10% tax on early distributions. 1040 ez 2013 You generally must pay the 10% additional tax on any amount attributable to the part of the rollover that you had to include in income. 1040 ez 2013 The additional tax is figured on Form 5329. 1040 ez 2013 For more information, see Form 5329 and its instructions. 1040 ez 2013 For information on qualified distributions from Roth IRAs, see Additional Tax on Early Distributions in chapter 2 of Publication 590. 1040 ez 2013 Distributions from designated Roth accounts allocable to in-plan Roth rollovers within the 5-year period. 1040 ez 2013   If, within the 5-year period starting with the first day of your tax year in which you rolled over an amount from a 401(k), 403(b), or 457(b) plan to a designated Roth account, you take a distribution from the designated Roth account, you may have to pay the additional 10% tax on early distributions. 1040 ez 2013 You generally must pay the 10% additional tax on any amount attributable to the part of the in-plan rollover that you had to include in income. 1040 ez 2013 The additional tax is figured on Form 5329. 1040 ez 2013 For more information, see Form 5329 and its instructions. 1040 ez 2013 For information on qualified distributions from designated Roth accounts, see Designated Roth accounts under Taxation of Periodic Payments in Publication 575. 1040 ez 2013 Exceptions to tax. 1040 ez 2013    Certain early distributions are excepted from the early distribution tax. 1040 ez 2013 If the payer knows that an exception applies to your early distribution, distribution code “2,” “3,” or “4” should be shown in box 7 of your Form 1099-R and you do not have to report the distribution on Form 5329. 1040 ez 2013 If an exception applies but distribution code “1” (early distribution, no known exception) is shown in box 7, you must file Form 5329. 1040 ez 2013 Enter the taxable amount of the distribution shown in box 2a of your Form 1099-R on line 1 of Form 5329. 1040 ez 2013 On line 2, enter the amount that can be excluded and the exception number shown in the Form 5329 instructions. 1040 ez 2013    If distribution code “1” is incorrectly shown on your Form 1099-R for a distribution received when you were age 59½ or older, include that distribution on Form 5329. 1040 ez 2013 Enter exception number “12” on line 2. 1040 ez 2013 General exceptions. 1040 ez 2013   The tax does not apply to distributions that are: Made as part of a series of substantially equal periodic payments (made at least annually) for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary (if from a qualified retirement plan, the payments must begin after your separation from service), Made because you are totally and permanently disabled, or Made on or after the death of the plan participant or contract holder. 1040 ez 2013 Additional exceptions for qualified retirement plans. 1040 ez 2013   The tax does not apply to distributions that are: From a qualified retirement plan (other than an IRA) after your separation from service in or after the year you reached age 55 (age 50 for qualified public safety employees), From a qualified retirement plan (other than an IRA) to an alternate payee under a qualified domestic relations order, From a qualified retirement plan to the extent you have deductible medical expenses that exceed 10% (or 7. 1040 ez 2013 5% if you or your spouse are age 65 or older) of your adjusted gross income, whether or not you itemize your deductions for the year, From an employer plan under a written election that provides a specific schedule for distribution of your entire interest if, as of March 1, 1986, you had separated from service and had begun receiving payments under the election, From an employee stock ownership plan for dividends on employer securities held by the plan, From a qualified retirement plan due to an IRS levy of the plan, From elective deferral accounts under 401(k) or 403(b) plans or similar arrangements that are qualified reservist distributions, or Phased retirement annuity payments made to federal employees. 1040 ez 2013 See Pub. 1040 ez 2013 721 for more information on the phased retirement program. 1040 ez 2013 Qualified public safety employees. 1040 ez 2013   If you are a qualified public safety employee, distributions made from a governmental defined benefit pension plan are not subject to the additional tax on early distributions. 1040 ez 2013 You are a qualified public safety employee if you provide police protection, firefighting services, or emergency medical services for a state or municipality, and you separated from service in or after the year you attained age 50. 1040 ez 2013 Qualified reservist distributions. 1040 ez 2013   A qualified reservist distribution is not subject to the additional tax on early distributions. 1040 ez 2013 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 he or she is 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. 1040 ez 2013 You must have been ordered or called to active duty after September 11, 2001. 1040 ez 2013 For more information, see Qualified reservist distributions under Special Additional Taxes in Publication 575. 1040 ez 2013 Additional exceptions for nonqualified annuity contracts. 1040 ez 2013   The tax does not apply to distributions from: A deferred annuity contract to the extent allocable to investment in the contract before August 14, 1982, A deferred annuity contract under a qualified personal injury settlement, A deferred annuity contract purchased by your employer upon termination of a qualified employee plan or qualified employee annuity plan and held by your employer until your separation from service, or An immediate annuity contract (a single premium contract providing substantially equal annuity payments that start within 1 year from the date of purchase and are paid at least annually). 1040 ez 2013 Tax on Excess Accumulation To make sure that most of your retirement benefits are paid to you during your lifetime, rather than to your beneficiaries after your death, the payments that you receive from qualified retirement plans must begin no later than your required beginning date (defined later). 1040 ez 2013 The payments each year cannot be less than the required minimum distribution. 1040 ez 2013 Required distributions not made. 1040 ez 2013   If the actual distributions to you in any year are less than the minimum required distribution for that year, you are subject to an additional tax. 1040 ez 2013 The tax equals 50% of the part of the required minimum distribution that was not distributed. 1040 ez 2013   For this purpose, a qualified retirement plan includes: A qualified employee plan, A qualified employee annuity plan, An eligible section 457 deferred compensation plan, or A tax-sheltered annuity plan (403(b) plan)(for benefits accruing after 1986). 1040 ez 2013 Waiver. 1040 ez 2013   The tax may be waived if you establish that the shortfall in distributions was due to reasonable error and that reasonable steps are being taken to remedy the shortfall. 1040 ez 2013 See the Instructions for Form 5329 for the procedure to follow if you believe you qualify for a waiver of this tax. 1040 ez 2013 State insurer delinquency proceedings. 1040 ez 2013   You might not receive the minimum distribution because assets are invested in a contract issued by an insurance company in state insurer delinquency proceedings. 1040 ez 2013 If your payments are reduced below the minimum due to these proceedings, you should contact your plan administrator. 1040 ez 2013 Under certain conditions, you will not have to pay the 50% excise tax. 1040 ez 2013 Required beginning date. 1040 ez 2013   Unless the rule for 5% owners applies, you generally must begin to receive distributions from your qualified retirement plan by April 1 of the year that follows the later of: The calendar year in which you reach age 70½, or The calendar year in which you retire from employment with the employer maintaining the plan. 1040 ez 2013 However, your plan may require you to begin to receive distributions by April 1 of the year that follows the year in which you reach age 70½, even if you have not retired. 1040 ez 2013   If you reached age 70½ in 2013, you may be required to receive your first distribution by April 1, 2014. 1040 ez 2013 Your required distribution then must be made for 2014 by December 31, 2014. 1040 ez 2013 5% owners. 1040 ez 2013   If you are a 5% owner, you must begin to receive distributions by April 1 of the year that follows the calendar year in which you reach age 70½. 1040 ez 2013   You are a 5% owner if, for the plan year ending in the calendar year in which you reach age 70½, you own (or are considered to own under section 318 of the Internal Revenue Code) more than 5% of the outstanding stock (or more than 5% of the total voting power of all stock) of the employer, or more than 5% of the capital or profits interest in the employer. 1040 ez 2013 Age 70½. 1040 ez 2013   You reach age 70½ on the date that is 6 calendar months after the date of your 70th birthday. 1040 ez 2013   For example, if you are retired and your 70th birthday was on June 30, 2013, you were age 70½ on December 30, 2013. 1040 ez 2013 If your 70th birthday was on July 1, 2013, you reached age 70½ on January 1, 2014. 1040 ez 2013 Required distributions. 1040 ez 2013   By the required beginning date, as explained earlier, you must either: Receive your entire interest in the plan (for a tax-sheltered annuity, your entire benefit accruing after 1986), or Begin receiving periodic distributions in annual amounts calculated to distribute your entire interest (for a tax-sheltered annuity, your entire benefit accruing after 1986) over your life or life expectancy or over the joint lives or joint life expectancies of you and a designated beneficiary (or over a shorter period). 1040 ez 2013 Additional information. 1040 ez 2013   For more information on this rule, see Tax on Excess Accumulation in Publication 575. 1040 ez 2013 Form 5329. 1040 ez 2013   You must file Form 5329 if you owe tax because you did not receive a minimum required distribution from your qualified retirement plan. 1040 ez 2013 Survivors and Beneficiaries Generally, a survivor or beneficiary reports pension or annuity income in the same way the plan participant would have. 1040 ez 2013 However, some special rules apply. 1040 ez 2013 See Publication 575 for more information. 1040 ez 2013 Survivors of employees. 1040 ez 2013   If you are entitled to receive a survivor annuity on the death of an employee who died, you can exclude part of each annuity payment as a tax-free recovery of the employee's investment in the contract. 1040 ez 2013 You must figure the taxable and tax-free parts of your annuity payments using the method that applies as if you were the employee. 1040 ez 2013 Survivors of retirees. 1040 ez 2013   If you receive benefits as a survivor under a joint and survivor annuity, include those benefits in income in the same way the retiree would have included them in income. 1040 ez 2013 If you receive a survivor annuity because of the death of a retiree who had reported the annuity under the Three-Year Rule and recovered all of the cost tax free, your survivor payments are fully taxable. 1040 ez 2013    If the retiree was reporting the annuity payments under the General Rule, you must apply the same exclusion percentage to your initial survivor annuity payment called for in the contract. 1040 ez 2013 The resulting tax-free amount will then remain fixed. 1040 ez 2013 Any increases in the survivor annuity are fully taxable. 1040 ez 2013    If the retiree was reporting the annuity payments under the Simplified Method, the part of each payment that is tax free is the same as the tax-free amount figured by the retiree at the annuity starting date. 1040 ez 2013 This amount remains fixed even if the annuity payments are increased or decreased. 1040 ez 2013 See Simplified Method , earlier. 1040 ez 2013   In any case, if the annuity starting date is after 1986, the total exclusion over the years cannot be more than the cost. 1040 ez 2013 Estate tax deduction. 1040 ez 2013   If your annuity was a joint and survivor annuity that was included in the decedent's estate, an estate tax may have been paid on it. 1040 ez 2013 You can deduct the part of the total estate tax that was based on the annuity. 1040 ez 2013 The deceased annuitant must have died after the annuity starting date. 1040 ez 2013 (For details, see section 1. 1040 ez 2013 691(d)-1 of the regulations. 1040 ez 2013 ) Deduct it in equal amounts over your remaining life expectancy. 1040 ez 2013   If the decedent died before the annuity starting date of a deferred annuity contract and you receive a death benefit under that contract, the amount you receive (either in a lump sum or as periodic payments) in excess of the decedent's cost is included in your gross income as income in respect of a decedent for which you may be able to claim an estate tax deduction. 1040 ez 2013   You can take the estate tax deduction as an itemized deduction on Schedule A, Form 1040. 1040 ez 2013 This deduction is not subject to the 2%-of-adjusted-gross-income limit on miscellaneous deductions. 1040 ez 2013 See Publication 559, Survivors, Executors, and Administrators, for more information on the estate tax deduction. 1040 ez 2013 Prev  Up  Next   Home   More Online Publications
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Understanding Your CP283C Notice

We charged you a penalty for filing a late or incomplete Form 8955-SSA, Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits.


What you need to do

  • If you agree, send the amount due by the date on your notice to avoid interest charges.
  • If you disagree, contact us by mail or call 1-877-829-5500.

You may want to

  • Review this notice with your tax preparer.
  • Call us for assistance at the toll-free telephone number listed at the top right corner of your notice.

Answers to Common Questions

When is my Form 8955-SSA due?
Form 8955-SSA is due the last day of the seventh month following the end of your plan year.

Can I have the penalty removed or reduced?
We can consider reducing or removing the penalty under certain circumstances. Send a signed statement to the address shown at the top of the notice that includes the following:

  • The penalty you would like us to reconsider
  • The reason you believe we should reconsider it
  • Your name and title

Understanding your notice

Your notice may look different from the sample because the information contained in your notice is tailored to your situation.

Notice CP283C, Page 1

Notice CP283C, Page 2

Notice CP283C, Page 3

Page Last Reviewed or Updated: 24-Dec-2013

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
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The 1040 Ez 2013

1040 ez 2013 Publication 502 - Introductory Material Table of Contents What's New Reminders IntroductionOrdering forms and publications. 1040 ez 2013 Tax questions. 1040 ez 2013 Useful Items - You may want to see: What's New Medical and dental expenses. 1040 ez 2013  Beginning January 1, 2013, you can deduct only the part of your medical and dental expenses that exceed 10% of your adjusted gross income (AGI) (7. 1040 ez 2013 5% if either you or your spouse was born before January 2, 1949). 1040 ez 2013 Standard mileage rate. 1040 ez 2013  The standard mileage rate allowed for operating expenses for a car when you use it for medical reasons is 24 cents per mile. 1040 ez 2013 See Transportation under What Medical Expenses Are Includible. 1040 ez 2013 Federal tax benefits for same-sex married couples. 1040 ez 2013  For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. 1040 ez 2013 For more information, see Publication 501, Exemptions, Standard Deduction, and Filing Information. 1040 ez 2013 Reminders Future developments. 1040 ez 2013   For the latest information about developments related to Publication 502, such as legislation enacted after it was published, go to www. 1040 ez 2013 irs. 1040 ez 2013 gov/pub502. 1040 ez 2013 Photographs of missing children. 1040 ez 2013  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. 1040 ez 2013 Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. 1040 ez 2013 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. 1040 ez 2013 Introduction This publication explains the itemized deduction for medical and dental expenses that you claim on Schedule A (Form 1040). 1040 ez 2013 It discusses what expenses, and whose expenses, you can and cannot include in figuring the deduction. 1040 ez 2013 It explains how to treat reimbursements and how to figure the deduction. 1040 ez 2013 It also tells you how to report the deduction on your tax return and what to do if you sell medical property or receive damages for a personal injury. 1040 ez 2013 Medical expenses include dental expenses, and in this publication the term “medical expenses” is often used to refer to medical and dental expenses. 1040 ez 2013 You can deduct on Schedule A (Form 1040) only the part of your medical and dental expenses that is more than 10% of your adjusted gross income (AGI). 1040 ez 2013 But if either you or your spouse was born before January 2, 1949, you can deduct the amount of your medical and dental expenses that is more than 7. 1040 ez 2013 5% of your AGI. 1040 ez 2013 If your medical and dental expenses are not more than 10% of your AGI (7. 1040 ez 2013 5% if either you or your spouse was born before January 2, 1949), you cannot claim a deduction. 1040 ez 2013 This publication also explains how to treat impairment-related work expenses, health insurance premiums if you are self-employed, and the health coverage tax credit that is available to certain individuals. 1040 ez 2013 Pub. 1040 ez 2013 502 covers many common medical expenses but not every possible medical expense. 1040 ez 2013 If you cannot find the expense you are looking for, refer to the definition of medical expenses under What Are Medical Expenses . 1040 ez 2013 See How To Get Tax Help near the end of this publication for information about getting publications and forms. 1040 ez 2013 Comments and suggestions. 1040 ez 2013   We welcome your comments about this publication and your suggestions for future editions. 1040 ez 2013   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. 1040 ez 2013 NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. 1040 ez 2013 Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 1040 ez 2013   You can send your comments from www. 1040 ez 2013 irs. 1040 ez 2013 gov/formspubs. 1040 ez 2013 Click on “More Information” and then on “Comment on Tax Forms and Publications. 1040 ez 2013 ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. 1040 ez 2013 Ordering forms and publications. 1040 ez 2013   Visit www. 1040 ez 2013 irs. 1040 ez 2013 gov/formspubs to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. 1040 ez 2013 Internal Revenue Service 1201 N. 1040 ez 2013 Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. 1040 ez 2013   If you have a tax question, check the information available on IRS. 1040 ez 2013 gov or call 1-800-829-1040. 1040 ez 2013 We cannot answer tax questions sent to either of the above addresses. 1040 ez 2013 Useful Items - You may want to see: Publication 969 Health Savings Accounts and Other Tax-Favored Health Plans Forms (and Instructions) 1040 U. 1040 ez 2013 S. 1040 ez 2013 Individual Income Tax Return Schedule A (Form 1040) Itemized Deductions 8885 Health Coverage Tax Credit Prev  Up  Next   Home   More Online Publications