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Federal Tax Forms

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Federal Tax Forms

Federal tax forms Index A Abandonments, Abandonments Annuities, Insurance Policies and Annuities Asset classification Capital, Capital Assets Noncapital, Noncapital Assets Assistance (see Tax help) Assumption of liabilities, Assumption of liabilities. Federal tax forms , Liabilities. Federal tax forms B Basis Adjusted, Adjusted basis. Federal tax forms Original, Basis. Federal tax forms Bonds, U. Federal tax forms S. Federal tax forms Treasury, U. Federal tax forms S. Federal tax forms Treasury Notes or Bonds Business, sold, Sale of a Business C Canceled Debt, Cancellation of debt. Federal tax forms Lease, Cancellation of a lease. Federal tax forms Real property sale, Canceling a sale of real property. Federal tax forms Capital assets defined, Capital Assets Capital gains and losses Figuring, Long and Short Term Holding period, Holding period. Federal tax forms Long term, Long and Short Term Short term, Long and Short Term Treatment of capital losses, Treatment of Capital Losses Casualties, Section 1231 transactions. Federal tax forms Charitable organization Bargain sale to, Bargain sales to charity. Federal tax forms , Bargain sale to charity. Federal tax forms Gift to, Gift to charitable organization. Federal tax forms Classes of assets, Classes of assets. Federal tax forms Coal, Coal and Iron Ore Coins, Precious Metals and Stones, Stamps, and Coins Comments, Comments and suggestions. Federal tax forms Commodities derivative financial instruments, Commodities derivative financial instrument. Federal tax forms Condemnations, Condemnations, Section 1231 transactions. Federal tax forms Conversion transactions, Conversion Transactions Copyrights, Copyright. Federal tax forms , Copyrights. Federal tax forms Covenant not to compete, Covenant not to compete. Federal tax forms D Debt cancellation, Cancellation of debt. Federal tax forms , Cancellation of debt. Federal tax forms Deferred exchange, Deferred Exchange Depreciable property Real, Depreciable real property. Federal tax forms Records, Depreciation Recapture Section 1245, Section 1245 property defined. Federal tax forms , Like-Kind Exchanges and Involuntary Conversions Section 1250, Section 1250 property defined. Federal tax forms Depreciation recapture Personal property, Section 1245 Property Real property, Section 1250 property defined. Federal tax forms E Easement, Easement. Federal tax forms Exchanges Deferred, Deferred Exchange Involuntary, Involuntary Conversions Like-kind, Like-Kind Exchanges, Like-Kind Exchanges and Involuntary Conversions Nontaxable, Nontaxable Exchanges Related persons, Related persons. Federal tax forms U. Federal tax forms S. Federal tax forms Treasury notes or bonds, U. Federal tax forms S. Federal tax forms Treasury Notes or Bonds F Fair market value, Fair market value. Federal tax forms Foreclosure, Foreclosures and Repossessions Form 1040 (Sch. Federal tax forms D), Schedule D and Form 8949 1099-A, Forms 1099-A and 1099-C. Federal tax forms , Forms 1099-A and 1099-C. Federal tax forms 1099-B, Form 1099-B. Federal tax forms 1099-C, Forms 1099-A and 1099-C. Federal tax forms , Forms 1099-A and 1099-C. Federal tax forms 1099-S, Form 1099-S. Federal tax forms 4797, Business property. Federal tax forms , Reporting the exchange. Federal tax forms , Form 4797 8594, Reporting requirement. Federal tax forms 8824, Reporting the exchange. Federal tax forms 8949, Forms to file. Federal tax forms , Personal-use property. Federal tax forms , Reporting the exchange. Federal tax forms , More information. Federal tax forms , Timber, Introduction, Form 1099-B. Federal tax forms , Personal-use property. Federal tax forms , Mark-to-market election. Federal tax forms Franchise, Franchise, Trademark, or Trade Name Free tax services, Free help with your tax return. Federal tax forms G Gains and losses Bargain sale, Bargain Sale Business property, Ordinary or Capital Gain or Loss for Business Property Defined, Gain or Loss From Sales and Exchanges Form 4797, Form 4797 Ordinary or capital, Ordinary or Capital Gain or Loss Property changed to business or rental use, Property Changed to Business or Rental Use Property used partly for rental, Property Used Partly for Business or Rental Reporting, Reporting Gains and Losses Gifts of property, Gifts, Gift. Federal tax forms Gold, Precious Metals and Stones, Stamps, and Coins H Hedging transactions, Hedging transaction. Federal tax forms Help (see Tax help) Holding period, Holding period. Federal tax forms Housing, low income, Low-income housing. Federal tax forms , Low-Income Housing With Two or More Elements I Indirect ownership of stock, Ownership of stock or partnership interests. Federal tax forms Information returns, Information Returns Inherited property, Inherited property. Federal tax forms Installment sales, Installment Sales, Installment sale. Federal tax forms Insurance policies, Insurance Policies and Annuities Intangible property, Dispositions of Intangible Property Involuntary conversion Defined, Involuntary Conversions Depreciable property, Like-Kind Exchanges and Involuntary Conversions Iron ore, Coal and Iron Ore L Land Release of restriction, Release of restriction on land. Federal tax forms Subdivision, Subdivision of Land Lease, cancellation of, Cancellation of a lease. Federal tax forms Liabilities, assumption, Liabilities. Federal tax forms Like-kind exchanges Deferred, Deferred Exchange Liabilities, assumed, Assumption of liabilities. Federal tax forms Like-class property, Like-Kind Property Like-kind property, Like-Kind Property Multiple parties, Multiple-party transactions. Federal tax forms Multiple property, Multiple Property Exchanges Partnership interests, Partnership Interests Qualifying property, Qualifying Property Related persons, Like-Kind Exchanges Between Related Persons Low-income housing, Low-income housing. Federal tax forms M Multiple property exchanges, Multiple Property Exchanges N Noncapital assets defined, Noncapital Assets Nontaxable exchanges Like-kind, Like-Kind Exchanges Other nontaxable exchanges, Other Nontaxable Exchanges Partially, Partially Nontaxable Exchanges Property exchanged for stock, Property Exchanged for Stock Notes, U. Federal tax forms S. Federal tax forms Treasury, U. Federal tax forms S. Federal tax forms Treasury Notes or Bonds O Ordinary or capital gain, Ordinary or Capital Gain or Loss P Partially nontaxable exchanges, Partially Nontaxable Exchanges Partnership Controlled, Controlled partnership transaction. Federal tax forms Related persons, Related persons. Federal tax forms , Controlled entity. Federal tax forms Sale or exchange of interest, Partnership Interests, Partnership interests. Federal tax forms , Partnership interests. Federal tax forms Patents, Patents Personal property Depreciable, Like-Kind Exchanges and Involuntary Conversions Gains and losses, Personal-use property. Federal tax forms Transfer at death, Transfers at Death Precious metals and stones, Precious Metals and Stones, Stamps, and Coins Property used partly for business or rental, Property Used Partly for Business or Rental, Part business or rental. Federal tax forms Publications (see Tax help) Publicly traded securities, rollover of gain from, Rollover of Gain From Publicly Traded Securities R Real property Depreciable, Depreciable real property. Federal tax forms Transfer at death, Transfers at Death Related persons, Sales and Exchanges Between Related Persons Condemned property replacement, bought from, Buying replacement property from a related person. Federal tax forms Gain on sale of property, Sales and Exchanges Between Related Persons Like-kind exchanges between, Like-Kind Exchanges Between Related Persons List, Related persons. Federal tax forms Loss on sale of property, Nondeductible Loss Patent transferred to, Related persons. Federal tax forms Replacement property, Replacement property. Federal tax forms , Replacement property to be produced. Federal tax forms Repossession, Foreclosures and Repossessions, Repossession. Federal tax forms Residual method, sale of business, Residual method. Federal tax forms Rollover of gain, Rollover of Gain From Publicly Traded Securities S Sale of a business, Sale of a Business Sales Bargain, charitable organization, Bargain sales to charity. Federal tax forms , Bargain sale to charity. Federal tax forms Installment, Installment Sales, Installment sale. Federal tax forms Property changed to business or rental use, Property Changed to Business or Rental Use Related persons, Sales and Exchanges Between Related Persons, Related persons. Federal tax forms Section 1231 gains and losses, Section 1231 Gains and Losses Section 1245 property Defined, Section 1245 Property Gain, ordinary income, Gain Treated as Ordinary Income Multiple asset accounts, Multiple asset accounts. Federal tax forms Section 1250 property Additional depreciation, Additional Depreciation Defined, Section 1250 property defined. Federal tax forms Foreclosure, Foreclosure. Federal tax forms Gain, ordinary income, Gain Treated as Ordinary Income Nonresidential, Nonresidential real property. Federal tax forms Residential, Residential rental property. Federal tax forms Section 197 intangibles, Section 197 Intangibles Severance damages, Severance damages. Federal tax forms Silver, Precious Metals and Stones, Stamps, and Coins Small business stock, Gains on Sales of Qualified Small Business Stock Specialized small business investment company (SSBIC), rollover of gain into, Rollover of Gain From Publicly Traded Securities Stamps, Precious Metals and Stones, Stamps, and Coins Stock Capital asset, Capital Assets Controlling interest, corporation, Controlling interest in a corporation. Federal tax forms Indirect ownership, Ownership of stock or partnership interests. Federal tax forms Property exchanged for, Property Exchanged for Stock Publicly traded securities, Rollover of Gain From Publicly Traded Securities Small business, Gains on Sales of Qualified Small Business Stock Suggestions, Comments and suggestions. Federal tax forms T Tax help, How To Get Tax Help Tax rates, capital gain, Capital Gains Tax Rates Thefts, Section 1231 transactions. Federal tax forms Timber, Timber, Section 1231 transactions. Federal tax forms Trade name, Franchise, Trademark, or Trade Name Trademark, Franchise, Trademark, or Trade Name Transfers to spouse, Transfers to Spouse U U. Federal tax forms S. Federal tax forms Treasury bonds, U. Federal tax forms S. Federal tax forms Treasury Notes or Bonds Unharvested crops, Section 1231 transactions. Federal tax forms Prev  Up     Home   More Online Publications
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Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

Wisconsin Department of Agriculture, Trade and Consumer Protection

Website: Wisconsin Department of Agriculture, Trade and Consumer Protection

Address: Wisconsin Department of Agriculture, Trade and Consumer Protection
Bureau of Consumer Protection
PO Box 8911
2811 Agriculture Dr.
Madison, WI 53708-8911

Phone Number: 608-224-4953

Toll-free: 1-800-422-7128 (WI)

TTY: 608-224-5058

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Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

Department of Financial Institutions

Website: Department of Financial Institutions

Address: Department of Financial Institutions
Bureau of Consumer Affairs
PO Box 8041
Madison, WI 53708-8041

Phone Number: 608-264-7969

TTY: 608-266-8818

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Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

Office of the Commissioner of Insurance

Website: Office of the Commissioner of Insurance

Address: Office of the Commissioner of Insurance
125 S. Webster St.
Madison, WI 53703-3474

Phone Number: 608-266-3585

Toll-free: 1-800-236-8517 (WI)

TTY: 711 and ask for 608-266-3586

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Securities Administrators

Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.

Department of Financial Institutions

Website: Department of Financial Institutions

Address: Department of Financial Institutions
Division of Securities
PO Box 1768
Madison, WI 53701-1768

Phone Number: 608-266-1064

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Utility Commissions

State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.

Public Service Commission

Website: Public Service Commission

Address: Public Service Commission
Consumer Affairs Unit
PO Box 7854
Madison, WI 53707-7854

Phone Number: 608-266-2001

Toll-free: 1-800-225-7729

TTY: 608-267-1479

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The Federal Tax Forms

Federal tax forms Publication 575 - Main Content Table of Contents General InformationPension. Federal tax forms Annuity. Federal tax forms Qualified employee plan. Federal tax forms Qualified employee annuity. Federal tax forms Designated Roth account. Federal tax forms Tax-sheltered annuity plan. Federal tax forms Fixed-period annuities. Federal tax forms Annuities for a single life. Federal tax forms Joint and survivor annuities. Federal tax forms Variable annuities. Federal tax forms Disability pensions. Federal tax forms Variable Annuities Section 457 Deferred Compensation Plans Disability Pensions Insurance Premiums for Retired Public Safety Officers Railroad Retirement Benefits Withholding Tax and Estimated Tax Cost (Investment in the Contract)Foreign employment contributions while a nonresident alien. Federal tax forms Taxation of Periodic PaymentsPeriod of participation. Federal tax forms Fully Taxable Payments Partly Taxable Payments Taxation of Nonperiodic PaymentsFiguring the Taxable Amount Loans Treated as Distributions Transfers of Annuity Contracts Lump-Sum Distributions RolloversExceptions. Federal tax forms No tax withheld. Federal tax forms Partial rollovers. Federal tax forms Frozen deposits. Federal tax forms Reasonable period of time. Federal tax forms 20% Mandatory withholding. Federal tax forms How to report. Federal tax forms How to report. Federal tax forms Special rule for Roth IRAs and designated Roth accounts. Federal tax forms Special Additional TaxesTax on Early Distributions Tax on Excess Accumulation Survivors and BeneficiariesGuaranteed payments. Federal tax forms How To Get Tax HelpLow Income Taxpayer Clinics General Information Definitions. Federal tax forms   Some of the terms used in this publication are defined in the following paragraphs. Federal tax forms Pension. Federal tax forms   A pension is generally a series of definitely determinable payments made to you after you retire from work. Federal tax forms Pension payments are made regularly and are based on such factors as years of service and prior compensation. Federal tax forms Annuity. Federal tax forms   An annuity is a series of payments under a contract made at regular intervals over a period of more than one full year. Federal tax forms They can be either fixed (under which you receive a definite amount) or variable (not fixed). Federal tax forms You can buy the contract alone or with the help of your employer. Federal tax forms Qualified employee plan. Federal tax forms   A qualified employee plan is an employer's stock bonus, pension, or profit-sharing plan that is for the exclusive benefit of employees or their beneficiaries and that meets Internal Revenue Code requirements. Federal tax forms It qualifies for special tax benefits, such as tax deferral for employer contributions and capital gain treatment or the 10-year tax option for lump-sum distributions (if participants qualify). Federal tax forms To determine whether your plan is a qualified plan, check with your employer or the plan administrator. Federal tax forms Qualified employee annuity. Federal tax forms   A qualified employee annuity is a retirement annuity purchased by an employer for an employee under a plan that meets Internal Revenue Code requirements. Federal tax forms Designated Roth account. Federal tax forms   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. Federal tax forms Elective deferrals that are designated as Roth contributions are included in your income. Federal tax forms However, qualified distributions (explained later) are not included in your income. Federal tax forms You should check with your plan administrator to determine if your plan will accept designated Roth contributions. Federal tax forms Tax-sheltered annuity plan. Federal tax forms   A tax-sheltered annuity plan (often referred to as a 403(b) plan or a tax-deferred annuity plan) is a retirement plan for employees of public schools and certain tax-exempt organizations. Federal tax forms Generally, a tax-sheltered annuity plan provides retirement benefits by purchasing annuity contracts for its participants. Federal tax forms Types of pensions and annuities. Federal tax forms   Pensions and annuities include the following types. Federal tax forms Fixed-period annuities. Federal tax forms   You receive definite amounts at regular intervals for a specified length of time. Federal tax forms Annuities for a single life. Federal tax forms   You receive definite amounts at regular intervals for life. Federal tax forms The payments end at death. Federal tax forms Joint and survivor annuities. Federal tax forms   The first annuitant receives a definite amount at regular intervals for life. Federal tax forms After he or she dies, a second annuitant receives a definite amount at regular intervals for life. Federal tax forms The amount paid to the second annuitant may or may not differ from the amount paid to the first annuitant. Federal tax forms Variable annuities. Federal tax forms   You receive payments that may vary in amount for a specified length of time or for life. Federal tax forms The amounts you receive may depend upon such variables as profits earned by the pension or annuity funds, cost-of-living indexes, or earnings from a mutual fund. Federal tax forms Disability pensions. Federal tax forms   You receive disability payments because you retired on disability and have not reached minimum retirement age. Federal tax forms More than one program. Federal tax forms   You may receive employee plan benefits from more than one program under a single trust or plan of your employer. Federal tax forms If you participate in more than one program, you may have to treat each as a separate pension or annuity contract, depending upon the facts in each case. Federal tax forms Also, you may be considered to have received more than one pension or annuity. Federal tax forms Your former employer or the plan administrator should be able to tell you if you have more than one contract. Federal tax forms Example. Federal tax forms Your employer set up a noncontributory profit-sharing plan for its employees. Federal tax forms The plan provides that the amount held in the account of each participant will be paid when that participant retires. Federal tax forms Your employer also set up a contributory defined benefit pension plan for its employees providing for the payment of a lifetime pension to each participant after retirement. Federal tax forms The amount of any distribution from the profit-sharing plan depends on the contributions (including allocated forfeitures) made for the participant and the earnings from those contributions. Federal tax forms Under the pension plan, however, a formula determines the amount of the pension benefits. Federal tax forms The amount of contributions is the amount necessary to provide that pension. Federal tax forms Each plan is a separate program and a separate contract. Federal tax forms If you get benefits from these plans, you must account for each separately, even though the benefits from both may be included in the same check. Federal tax forms Distributions from a designated Roth account are treated separately from other distributions from the plan. Federal tax forms Qualified domestic relations order (QDRO). Federal tax forms   A QDRO is a judgment, decree, or order relating to payment of child support, alimony, or marital property rights to a spouse, former spouse, child, or other dependent of a participant in a retirement plan. Federal tax forms The QDRO must contain certain specific information, such as the name and last known mailing address of the participant and each alternate payee, and the amount or percentage of the participant's benefits to be paid to each alternate payee. Federal tax forms A QDRO may not award an amount or form of benefit that is not available under the plan. Federal tax forms   A spouse or former spouse who receives part of the benefits from a retirement plan under a QDRO reports the payments received as if he or she were a plan participant. Federal tax forms The spouse or former spouse is allocated a share of the participant's cost (investment in the contract) equal to the cost times a fraction. Federal tax forms The numerator of the fraction is the present value of the benefits payable to the spouse or former spouse. Federal tax forms The denominator is the present value of all benefits payable to the participant. Federal tax forms   A distribution that is paid to a child or other dependent under a QDRO is taxed to the plan participant. Federal tax forms Variable Annuities The tax rules in this publication apply both to annuities that provide fixed payments and to annuities that provide payments that vary in amount based on investment results or other factors. Federal tax forms For example, they apply to commercial variable annuity contracts, whether bought by an employee retirement plan for its participants or bought directly from the issuer by an individual investor. Federal tax forms Under these contracts, the owner can generally allocate the purchase payments among several types of investment portfolios or mutual funds and the contract value is determined by the performance of those investments. Federal tax forms The earnings are not taxed until distributed either in a withdrawal or in annuity payments. Federal tax forms The taxable part of a distribution is treated as ordinary income. Federal tax forms Net investment income tax. Federal tax forms   Beginning in 2013, annuities under a nonqualified plan are included in calculating your net investment income for the net investment income tax (NIIT). Federal tax forms For information see the Instructions for Form 8960, Net Investment Income Tax — Individuals, Estates and Trusts. Federal tax forms For information on the tax treatment of a transfer or exchange of a variable annuity contract, see Transfers of Annuity Contracts under Taxation of Nonperiodic Payments, later. Federal tax forms Withdrawals. Federal tax forms   If you withdraw funds before your annuity starting date and your annuity is under a qualified retirement plan, a ratable part of the amount withdrawn is tax free. Federal tax forms The tax-free part is based on the ratio of your cost (investment in the contract) to your account balance under the plan. Federal tax forms   If your annuity is under a nonqualified plan (including a contract you bought directly from the issuer), the amount withdrawn is allocated first to earnings (the taxable part) and then to your cost (the tax-free part). Federal tax forms However, if you bought your annuity contract before August 14, 1982, a different allocation applies to the investment before that date and the earnings on that investment. Federal tax forms To the extent the amount withdrawn does not exceed that investment and earnings, it is allocated first to your cost (the tax-free part) and then to earnings (the taxable part). Federal tax forms   If you withdraw funds (other than as an annuity) on or after your annuity starting date, the entire amount withdrawn is generally taxable. Federal tax forms   The amount you receive in a full surrender of your annuity contract at any time is tax free to the extent of any cost that you have not previously recovered tax free. Federal tax forms The rest is taxable. Federal tax forms   For more information on the tax treatment of withdrawals, see Taxation of Nonperiodic Payments , later. Federal tax forms If you withdraw funds from your annuity before you reach age 59½, also see Tax on Early Distributions under Special Additional Taxes, later. Federal tax forms Annuity payments. Federal tax forms   If you receive annuity payments under a variable annuity plan or contract, you recover your cost tax free under either the Simplified Method or the General Rule, as explained under Taxation of Periodic Payments , later. Federal tax forms For a variable annuity paid under a qualified plan, you generally must use the Simplified Method. Federal tax forms For a variable annuity paid under a nonqualified plan (including a contract you bought directly from the issuer), you must use a special computation under the General Rule. Federal tax forms For more information, see Variable annuities in Publication 939 under Computation Under the General Rule. Federal tax forms Death benefits. Federal tax forms    If you receive a single-sum distribution from a variable annuity contract because of the death of the owner or annuitant, the distribution is generally taxable only to the extent it is more than the unrecovered cost of the contract. Federal tax forms If you choose to receive an annuity, the payments are subject to tax as described above. Federal tax forms If the contract provides a joint and survivor annuity and the primary annuitant had received annuity payments before death, you figure the tax-free part of annuity payments you receive as the survivor in the same way the primary annuitant did. Federal tax forms See Survivors and Beneficiaries , later. Federal tax forms Section 457 Deferred Compensation Plans 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. Federal tax forms 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. Federal tax forms You are generally taxed on amounts deferred in an eligible state or local government plan only when they are distributed from the plan. Federal tax forms You are taxed on amounts deferred in an eligible tax-exempt organization plan when they are distributed or otherwise made available to you. Federal tax forms Your 457(b) plan may have a designated Roth account option. Federal tax forms If so, you may be able to roll over amounts to the designated Roth account or make contributions. Federal tax forms Elective deferrals to a designated Roth account are included in your income. Federal tax forms Qualified distributions (explained later) are not included in your income. Federal tax forms See the Designated Roth accounts discussion under Taxation of Periodic Payments, later. Federal tax forms This publication covers the tax treatment of benefits under eligible section 457 plans, but it does not cover the treatment of deferrals. Federal tax forms For information on deferrals under section 457 plans, see Retirement Plan Contributions under Employee Compensation in Publication 525. Federal tax forms Is your plan eligible?   To find out if your plan is an eligible plan, check with your employer. Federal tax forms Plans that are not eligible section 457 plans include the following: Bona fide vacation leave, sick leave, compensatory time, severance pay, disability pay, or death benefit plans. Federal tax forms Nonelective deferred compensation plans for nonemployees (independent contractors). Federal tax forms Deferred compensation plans maintained by churches. Federal tax forms Length of service award plans for bona fide volunteer firefighters and emergency medical personnel. Federal tax forms An exception applies if the total amount paid to a volunteer exceeds $3,000 for any year of service. Federal tax forms Disability Pensions 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. Federal tax forms You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A or on line 8 of Form 1040NR until you reach minimum retirement age. Federal tax forms Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. Federal tax forms You may be entitled to a tax credit if you were permanently and totally disabled when you retired. Federal tax forms For information on this credit, see Publication 524. Federal tax forms Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. Federal tax forms Report the payments on Form 1040, lines 16a and 16b; Form 1040A, lines 12a and 12b; or on Form 1040NR, lines 17a and 17b. Federal tax forms 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. Federal tax forms For more information about payments to survivors of terrorist attacks, see Publication 3920, Tax Relief for Victims of Terrorist Attacks. Federal tax forms Insurance Premiums for Retired Public Safety Officers If you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), you can elect to exclude from income distributions made from your eligible retirement plan that are used to pay the premiums for accident or health insurance or long-term care insurance. Federal tax forms The premiums can be for coverage for you, your spouse, or dependents. Federal tax forms The distribution must be made directly from the plan to the insurance provider. Federal tax forms You can exclude from income the smaller of the amount of the insurance premiums or $3,000. Federal tax forms You can only make this election for amounts that would otherwise be included in your income. Federal tax forms The amount excluded from your income cannot be used to claim a medical expense deduction. Federal tax forms An eligible retirement plan is a governmental plan that is: a qualified trust, a section 403(a) plan, a section 403(b) annuity, or a section 457(b) plan. Federal tax forms If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. Federal tax forms The amount shown in box 2a of Form 1099-R does not reflect this exclusion. Federal tax forms Report your total distributions on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. Federal tax forms Report the taxable amount on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. Federal tax forms Enter “PSO” next to the appropriate line on which you report the taxable amount. Federal tax forms If you are retired on disability and reporting your disability pension on line 7 of Form 1040 or Form 1040A, or line 8 of Form 1040NR, include only the taxable amount on that line and enter “PSO” and the amount excluded on the dotted line next to the applicable line. Federal tax forms Railroad Retirement Benefits Benefits paid under the Railroad Retirement Act fall into two categories. Federal tax forms These categories are treated differently for income tax purposes. Federal tax forms The first category is the amount of tier 1 railroad retirement benefits that equals the social security benefit that a railroad employee or beneficiary would have been entitled to receive under the social security system. Federal tax forms This part of the tier 1 benefit is the social security equivalent benefit (SSEB) and you treat it for tax purposes like social security benefits. Federal tax forms If you received, repaid, or had tax withheld from the SSEB portion of tier 1 benefits during 2013, you will receive Form RRB-1099, Payments by the Railroad Retirement Board (or Form RRB-1042S, Statement for Nonresident Alien Recipients of Payments by the Railroad Retirement Board, if you are a nonresident alien) from the U. Federal tax forms S. Federal tax forms Railroad Retirement Board (RRB). Federal tax forms For more information about the tax treatment of the SSEB portion of tier 1 benefits and Forms RRB-1099 and RRB-1042S, see Publication 915. Federal tax forms The second category contains the rest of the tier 1 railroad retirement benefits, called the non-social security equivalent benefit (NSSEB). Federal tax forms It also contains any tier 2 benefit, vested dual benefit (VDB), and supplemental annuity benefit. Federal tax forms Treat this category of benefits, shown on Form RRB-1099-R, as an amount received from a qualified employee plan. Federal tax forms This allows for the tax-free (nontaxable) recovery of employee contributions from the tier 2 benefits and the NSSEB part of the tier 1 benefits. Federal tax forms (The NSSEB and tier 2 benefits, less certain repayments, are combined into one amount called the Contributory Amount Paid on Form RRB-1099-R. Federal tax forms ) Vested dual benefits and supplemental annuity benefits are non-contributory pensions and are fully taxable. Federal tax forms See Taxation of Periodic Payments , later, for information on how to report your benefits and how to recover the employee contributions tax free. Federal tax forms Form RRB-1099-R is used for U. Federal tax forms S. Federal tax forms citizens, resident aliens, and nonresident aliens. Federal tax forms Nonresident aliens. Federal tax forms   A nonresident alien is an individual who is not a citizen or a resident alien of the United States. Federal tax forms Nonresident aliens are subject to mandatory U. Federal tax forms S. Federal tax forms tax withholding unless exempt under a tax treaty between the United States and their country of legal residency. Federal tax forms A tax treaty exemption may reduce or eliminate tax withholding from railroad retirement benefits. Federal tax forms See Tax withholding next for more information. Federal tax forms   If you are a nonresident alien and your tax withholding rate changed or your country of legal residence changed during the year, you may receive more than one Form RRB-1042S or Form RRB-1099-R. Federal tax forms To determine your total benefits paid or repaid and total tax withheld for the year, you should add the amounts shown on all forms you received for that year. Federal tax forms For information on filing requirements for aliens, see Publication 519, U. Federal tax forms S. Federal tax forms Tax Guide for Aliens. Federal tax forms For information on tax treaties between the United States and other countries that may reduce or eliminate U. Federal tax forms S. Federal tax forms tax on your benefits, see Publication 901, U. Federal tax forms S. Federal tax forms Tax Treaties. Federal tax forms Tax withholding. Federal tax forms   To request or change your income tax withholding from SSEB payments, U. Federal tax forms S. Federal tax forms citizens should contact the IRS for Form W-4V, Voluntary Withholding Request, and file it with the RRB. Federal tax forms To elect, revoke, or change your income tax withholding from NSSEB, tier 2, VDB, and supplemental annuity payments received, use Form RRB W-4P, Withholding Certificate for Railroad Retirement Payments. Federal tax forms If you are a nonresident alien or a U. Federal tax forms S. Federal tax forms citizen living abroad, you should provide Form RRB-1001, Nonresident Questionnaire, to the RRB to furnish citizenship and residency information and to claim any treaty exemption from U. Federal tax forms S. Federal tax forms tax withholding. Federal tax forms Nonresident U. Federal tax forms S. Federal tax forms citizens cannot elect to be exempt from withholding on payments delivered outside of the U. Federal tax forms S. Federal tax forms Help from the RRB. Federal tax forms   To request an RRB form or to get help with questions about an RRB benefit, you should contact your nearest RRB field office if you reside in the United States (call 1-877-772-5772 for the nearest field office) or U. Federal tax forms S. Federal tax forms consulate/Embassy if you reside outside the United States. Federal tax forms You can visit the RRB on the Internet at www. Federal tax forms rrb. Federal tax forms gov. Federal tax forms Form RRB-1099-R. Federal tax forms   The following discussion explains the items shown on Form RRB-1099-R. Federal tax forms The amounts shown on this form are before any deduction for: Federal income tax withholding, Medicare premiums, Legal process garnishment payments, Recovery of a prior year overpayment of an NSSEB, tier 2 benefit, VDB, or supplemental annuity benefit, or Recovery of Railroad Unemployment Insurance Act benefits received while awaiting payment of your railroad retirement annuity. Federal tax forms   The amounts shown on this form are after any offset for: Social Security benefits, Age reduction, Public Service pensions or public disability benefits, Dual railroad retirement entitlement under another RRB claim number, Work deductions, Legal process partition deductions, Actuarial adjustment, Annuity waiver, or Recovery of a current-year overpayment of NSSEB, tier 2, VDB, or supplemental annuity benefits. Federal tax forms   The amounts shown on Form RRB-1099-R do not reflect any special rules, such as capital gain treatment or the special 10-year tax option for lump-sum payments, or tax-free rollovers. Federal tax forms To determine if any of these rules apply to your benefits, see the discussions about them later. Federal tax forms   Generally, amounts shown on your Form RRB-1099-R are considered a normal distribution. Federal tax forms Use distribution code “7” if you are asked for a distribution code. Federal tax forms Distribution codes are not shown on Form RRB-1099-R. Federal tax forms   There are three copies of this form. Federal tax forms Copy B is to be included with your income tax return if federal income tax is withheld. Federal tax forms Copy C is for your own records. Federal tax forms Copy 2 is filed with your state, city, or local income tax return, when required. Federal tax forms See the illustrated Copy B (Form RRB-1099-R) above. Federal tax forms       Each beneficiary will receive his or her own Form RRB-1099-R. Federal tax forms If you receive benefits on more than one railroad retirement record, you may get more than one Form RRB-1099-R. Federal tax forms So that you get your form timely, make sure the RRB always has your current mailing address. Federal tax forms Please click here for the text description of the image. Federal tax forms Form RRB-1099-R Box 1—Claim Number and Payee Code. Federal tax forms   Your claim number is a six- or nine-digit number preceded by an alphabetical prefix. Federal tax forms This is the number under which the RRB paid your benefits. Federal tax forms Your payee code follows your claim number and is the last number in this box. Federal tax forms It is used by the RRB to identify you under your claim number. Federal tax forms In all your correspondence with the RRB, be sure to use the claim number and payee code shown in this box. Federal tax forms Box 2—Recipient's Identification Number. Federal tax forms   This is the recipient's U. Federal tax forms S. Federal tax forms taxpayer identification number. Federal tax forms It is the social security number (SSN), individual taxpayer identification number (ITIN), or employer identification number (EIN), if known, for the person or estate listed as the recipient. Federal tax forms If you are a resident or nonresident alien who must furnish a taxpayer identification number to the IRS and are not eligible to obtain an SSN, use Form W-7, Application for IRS Individual Taxpayer Identification Number, to apply for an ITIN. Federal tax forms The Instructions for Form W-7 explain how and when to apply. Federal tax forms Box 3—Employee Contributions. Federal tax forms   This is the amount of taxes withheld from the railroad employee's earnings that exceeds the amount of taxes that would have been withheld had the earnings been covered under the social security system. Federal tax forms This amount is the employee's cost that you use to figure the tax-free part of the NSSEB and tier 2 benefit you received (the amount shown in box 4). Federal tax forms (For information on how to figure the tax-free part, see Partly Taxable Payments under Taxation of Periodic Payments, later. Federal tax forms ) The amount shown is the total employee contribution amount, not reduced by any amounts that the RRB calculated as previously recovered. Federal tax forms It is the latest amount reported for 2013 and may have increased or decreased from a previous Form RRB-1099-R. Federal tax forms If this amount has changed, the change is retroactive. Federal tax forms You may need to refigure the tax-free part of your NSSEB/tier 2 benefit for 2013 and prior tax years. Federal tax forms If this box is blank, it means that the amount of your NSSEB and tier 2 payments shown in box 4 is fully taxable. Federal tax forms    If you had a previous annuity entitlement that ended and you are figuring the tax-free part of your NSSEB/tier 2 benefit for your current annuity entitlement, you should contact the RRB for confirmation of your correct employee contribution amount. Federal tax forms Box 4—Contributory Amount Paid. Federal tax forms   This is the gross amount of the NSSEB and tier 2 benefit you received in 2013, less any 2013 benefits you repaid in 2013. Federal tax forms (Any benefits you repaid in 2013 for an earlier year or for an unknown year are shown in box 8. Federal tax forms ) This amount is the total contributory pension paid in 2013. Federal tax forms It may be partly taxable and partly tax free or fully taxable. Federal tax forms If you determine you are eligible to compute a tax-free part as explained later in Partly Taxable Payments under Taxation of Periodic Payments, use the latest reported employee contribution amount shown in box 3 as the cost. Federal tax forms Box 5—Vested Dual Benefit. Federal tax forms   This is the gross amount of vested dual benefit (VDB) payments paid in 2013, less any 2013 VDB payments you repaid in 2013. Federal tax forms It is fully taxable. Federal tax forms VDB payments you repaid in 2013 for an earlier year or for an unknown year are shown in box 8. Federal tax forms Note. Federal tax forms The amounts shown in boxes 4 and 5 may represent payments for 2013 and/or other years after 1983. Federal tax forms Box 6—Supplemental Annuity. Federal tax forms   This is the gross amount of supplemental annuity benefits paid in 2013, less any 2013 supplemental annuity benefits you repaid in 2013. Federal tax forms It is fully taxable. Federal tax forms Supplemental annuity benefits you repaid in 2013 for an earlier year or for an unknown year are shown in box 8. Federal tax forms Box 7—Total Gross Paid. Federal tax forms   This is the sum of boxes 4, 5, and 6. Federal tax forms The amount represents the total pension paid in 2013. Federal tax forms Include this amount on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. Federal tax forms Box 8—Repayments. Federal tax forms   This amount represents any NSSEB, tier 2 benefit, VDB, and supplemental annuity benefit you repaid to the RRB in 2013 for years before 2013 or for unknown years. Federal tax forms The amount shown in this box has not been deducted from the amounts shown in boxes 4, 5, and 6. Federal tax forms It only includes repayments of benefits that were taxable to you. Federal tax forms This means it only includes repayments in 2013 of NSSEB benefits paid after 1985, tier 2 and VDB benefits paid after 1983, and supplemental annuity benefits paid in any year. Federal tax forms If you included the benefits in your income in the year you received them, you may be able to deduct the repaid amount. Federal tax forms For more information about repayments, see Repayment of benefits received in an earlier year , later. Federal tax forms    You may have repaid an overpayment of benefits by returning a payment, by making a payment, or by having an amount withheld from your railroad retirement annuity payment. Federal tax forms Box 9—Federal Income Tax Withheld. Federal tax forms   This is the total federal income tax withheld from your NSSEB, tier 2 benefit, VDB, and supplemental annuity benefit. Federal tax forms Include this on your income tax return as tax withheld. Federal tax forms If you are a nonresident alien and your tax withholding rate and/or country of legal residence changed during 2013, you will receive more than one Form RRB-1099-R for 2013. Federal tax forms Determine the total amount of U. Federal tax forms S. Federal tax forms federal income tax withheld from your 2013 RRB NSSEB, tier 2, VDB, and supplemental annuity payments by adding the amounts in box 9 of all original 2013 Forms RRB-1099-R, or the latest corrected or duplicate Forms RRB-1099-R you receive. Federal tax forms Box 10—Rate of Tax. Federal tax forms   If you are taxed as a U. Federal tax forms S. Federal tax forms citizen or resident alien, this box does not apply to you. Federal tax forms If you are a nonresident alien, an entry in this box indicates the rate at which tax was withheld on the NSSEB, tier 2, VDB, and supplemental annuity payments that were paid to you in 2013. Federal tax forms If you are a nonresident alien whose tax was withheld at more than one rate during 2013, you will receive a separate Form RRB-1099-R for each rate change during 2013. Federal tax forms Box 11—Country. Federal tax forms   If you are taxed as a U. Federal tax forms S. Federal tax forms citizen or resident alien, this box does not apply to you. Federal tax forms If you are a nonresident alien, an entry in this box indicates the country of which you were a resident for tax purposes at the time you received railroad retirement payments in 2013. Federal tax forms If you are a nonresident alien who was a resident of more than one country during 2013, you will receive a separate Form RRB-1099-R for each country of residence during 2013. Federal tax forms Box 12—Medicare Premium Total. Federal tax forms   This is for information purposes only. Federal tax forms The amount shown in this box represents the total amount of Part B Medicare premiums deducted from your railroad retirement annuity payments in 2013. Federal tax forms Medicare premium refunds are not included in the Medicare total. Federal tax forms The Medicare total is normally shown on Form RRB-1099 (if you are a citizen or resident alien of the United States) or Form RRB-1042S (if you are a nonresident alien). Federal tax forms However, if Form RRB-1099 or Form RRB-1042S is not required for 2013, then this total will be shown on Form RRB-1099-R. Federal tax forms If your Medicare premiums were deducted from your social security benefits, paid by a third party, refunded to you, and/or you paid the premiums by direct billing, your Medicare total will not be shown in this box. Federal tax forms Repayment of benefits received in an earlier year. Federal tax forms   If you had to repay any railroad retirement benefits that you had included in your income in an earlier year because at that time you thought you had an unrestricted right to it, you can deduct the amount you repaid in the year in which you repaid it. Federal tax forms   If you repaid $3,000 or less in 2013, deduct it on Schedule A (Form 1040), line 23. Federal tax forms The 2%-of-adjusted-gross-income limit applies to this deduction. Federal tax forms You cannot take this deduction if you file Form 1040A. Federal tax forms    If you repaid more than $3,000 in 2013, you can either take a deduction for the amount repaid on Schedule A (Form 1040), line 28 or you can take a credit against your tax. Federal tax forms For more information, see Repayments in Publication 525. Federal tax forms Withholding Tax and Estimated Tax Your retirement plan distributions are subject to federal income tax withholding. Federal tax forms However, you can choose not to have tax withheld on payments you receive unless they are eligible rollover distributions. Federal tax forms (These are distributions, described later under Rollovers, that are eligible for rollover treatment but are not paid directly to another qualified retirement plan or to a traditional IRA. Federal tax forms ) If you choose not to have tax withheld or if you do not have enough tax withheld, you may have to make estimated tax payments. Federal tax forms See Estimated tax , later. Federal tax forms The withholding rules apply to the taxable part of payments you receive from: An employer pension, annuity, profit-sharing, or stock bonus plan, Any other deferred compensation plan, A traditional individual retirement arrangement (IRA), or A commercial annuity. Federal tax forms For this purpose, a commercial annuity means an annuity, endowment, or life insurance contract issued by an insurance company. Federal tax forms There will be no withholding on any part of a distribution where it is reasonable to believe that it will not be includible in gross income. Federal tax forms Choosing no withholding. Federal tax forms   You can choose not to have income tax withheld from retirement plan payments unless they are eligible rollover distributions. Federal tax forms You can make this choice on Form W-4P for periodic and nonperiodic payments. Federal tax forms This choice generally remains in effect until you revoke it. Federal tax forms   The payer will ignore your choice not to have tax withheld if: You do not give the payer your social security number (in the required manner), or The IRS notifies the payer, before the payment is made, that you gave an incorrect social security number. Federal tax forms   To choose not to have tax withheld, a U. Federal tax forms S. Federal tax forms citizen or resident alien must give the payer a home address in the United States or its possessions. Federal tax forms Without that address, the payer must withhold tax. Federal tax forms For example, the payer has to withhold tax if the recipient has provided a U. Federal tax forms S. Federal tax forms address for a nominee, trustee, or agent to whom the benefits are delivered, but has not provided his or her own U. Federal tax forms S. Federal tax forms home address. Federal tax forms   If you do not give the payer a home address in the United States or its possessions, you can choose not to have tax withheld only if you certify to the payer that you are not a U. Federal tax forms S. Federal tax forms citizen, a U. Federal tax forms S. Federal tax forms resident alien, or someone who left the country to avoid tax. Federal tax forms But if you so certify, you may be subject to the 30% flat rate withholding that applies to nonresident aliens. Federal tax forms This 30% rate will not apply if you are exempt or subject to a reduced rate by treaty. Federal tax forms For details, get Publication 519. Federal tax forms Periodic payments. Federal tax forms   Unless you choose no withholding, your annuity or similar periodic payments (other than eligible rollover distributions) will be treated like wages for withholding purposes. Federal tax forms Periodic payments are amounts paid at regular intervals (such as weekly, monthly, or yearly) for a period of time greater than one year (such as for 15 years or for life). Federal tax forms You should give the payer a completed withholding certificate (Form W-4P or a similar form provided by the payer). Federal tax forms If you do not, tax will be withheld as if you were married and claiming three withholding allowances. Federal tax forms   Tax will be withheld as if you were single and were claiming no withholding allowances if: You do not give the payer your social security number (in the required manner), or The IRS notifies the payer (before any payment is made) that you gave an incorrect social security number. Federal tax forms   You must file a new withholding certificate to change the amount of withholding. Federal tax forms Nonperiodic distributions. Federal tax forms    Unless you choose no withholding, the withholding rate for a nonperiodic distribution (a payment other than a periodic payment) that is not an eligible rollover distribution is 10% of the distribution. Federal tax forms You can also ask the payer to withhold an additional amount using Form W-4P. Federal tax forms The part of any loan treated as a distribution (except an offset amount to repay the loan), explained later, is subject to withholding under this rule. Federal tax forms Eligible rollover distribution. Federal tax forms    If you receive an eligible rollover distribution, 20% of it generally will be withheld for income tax. Federal tax forms You cannot choose not to have tax withheld from an eligible rollover distribution. Federal tax forms However, tax will not be withheld if you have the plan administrator pay the eligible rollover distribution directly to another qualified plan or an IRA in a direct rollover. Federal tax forms For more information about eligible rollover distributions, see Rollovers , later. Federal tax forms Estimated tax. Federal tax forms   Your estimated tax is the total of your expected income tax, self-employment tax, and certain other taxes for the year, minus your expected credits and withheld tax. Federal tax forms Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax (after subtracting your withholding and credits) and you expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your 2014 return, or 100% of the tax shown on your 2013 return. Federal tax forms If your adjusted gross income for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing separately), substitute 110% for 100% in (2) above. Federal tax forms For more information, get Publication 505, Tax Withholding and Estimated Tax. Federal tax forms In figuring your withholding or estimated tax, remember that a part of your monthly social security or equivalent tier 1 railroad retirement benefits may be taxable. Federal tax forms See Publication 915. Federal tax forms You can choose to have income tax withheld from those benefits. Federal tax forms Use Form W-4V to make this choice. Federal tax forms Cost (Investment in the Contract) Distributions from your pension or annuity plan may include amounts treated as a recovery of your cost (investment in the contract). Federal tax forms If any part of a distribution is treated as a recovery of your cost under the rules explained in this publication, that part is tax free. Federal tax forms Therefore, the first step in figuring how much of a distribution is taxable is to determine the cost of your pension or annuity. Federal tax forms In general, your cost is your net investment in the contract as of the annuity starting date (or the date of the distribution, if earlier). Federal tax forms To find this amount, you must first figure the total premiums, contributions, or other amounts you paid. Federal tax forms This includes the amounts your employer contributed that were taxable to you when paid. Federal tax forms (However, see Foreign employment contributions , later. Federal tax forms ) It does not include amounts withheld from your pay on a tax-deferred basis (money that was taken out of your gross pay before taxes were deducted). Federal tax forms It also does not include amounts you contributed for health and accident benefits (including any additional premiums paid for double indemnity or disability benefits). Federal tax forms From this total cost you must subtract the following amounts. Federal tax forms Any refunded premiums, rebates, dividends, or unrepaid loans that were not included in your income and that you received by the later of the annuity starting date or the date on which you received your first payment. Federal tax forms Any other tax-free amounts you received under the contract or plan by the later of the dates in (1). Federal tax forms If you must use the Simplified Method for your annuity payments, the tax-free part of any single-sum payment received in connection with the start of the annuity payments, regardless of when you received it. Federal tax forms (See Simplified Method , later, for information on its required use. Federal tax forms ) If you use the General Rule for your annuity payments, the value of the refund feature in your annuity contract. Federal tax forms (See General Rule , later, for information on its use. Federal tax forms ) Your annuity contract has a refund feature if the annuity payments are for your life (or the lives of you and your survivor) and payments in the nature of a refund of the annuity's cost will be made to your beneficiary or estate if all annuitants die before a stated amount or a stated number of payments are made. Federal tax forms For more information, see Publication 939. Federal tax forms The tax treatment of the items described in (1) through (3) is discussed later under Taxation of Nonperiodic Payments . Federal tax forms Form 1099-R. Federal tax forms If you began receiving periodic payments of a life annuity in 2013, the payer should show your total contributions to the plan in box 9b of your 2013 Form 1099-R. Federal tax forms Annuity starting date defined. Federal tax forms   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. Federal tax forms Example. Federal tax forms On January 1, you completed all your payments required under an annuity contract providing for monthly payments starting on August 1 for the period beginning July 1. Federal tax forms The annuity starting date is July 1. Federal tax forms This is the date you use in figuring the cost of the contract and selecting the appropriate number from Table 1 for line 3 of the Simplified Method Worksheet. Federal tax forms Designated Roth accounts. Federal tax forms   Your cost in these accounts is your designated Roth contributions that were included in your income as wages subject to applicable withholding requirements. Federal tax forms Your cost will also include any in-plan Roth rollovers you included in income. Federal tax forms Foreign employment contributions. Federal tax forms   If you worked abroad, your cost may include contributions by your employer to the retirement plan, but only if those contributions would be excludible from your gross income had they been paid directly to you as compensation. Federal tax forms The contributions that apply are: Contributions before 1963 by your employer, Contributions after 1962 by your employer if the contributions would be excludible from your gross income (not including the foreign earned income exclusion) had they been paid directly to you, or Contributions after 1996 by your employer if you performed the services of a foreign missionary (a duly ordained, commissioned, or licensed minister of a church or a lay person) but only if the contributions would be excludible from your gross income had they been paid directly to you. Federal tax forms Foreign employment contributions while a nonresident alien. Federal tax forms   In determining your cost, special rules apply if you are a U. Federal tax forms S. Federal tax forms citizen or resident alien who received distributions in 2013 from a plan to which contributions were made while you were a nonresident alien. Federal tax forms Your contributions and your employer's contributions are not included in your cost if the contribution: Was made based on compensation which was for services performed outside the United States while you were a nonresident alien, and Was not subject to income tax under the laws of the United States or any foreign country, but only if the contribution would have been subject to income tax if paid as cash compensation when the services were performed. Federal tax forms Taxation of Periodic Payments This section explains how the periodic payments you receive from a pension or annuity plan are taxed. Federal tax forms Periodic payments are amounts paid at regular intervals (such as weekly, monthly, or yearly) for a period of time greater than one year (such as for 15 years or for life). Federal tax forms These payments are also known as amounts received as an annuity. Federal tax forms If you receive an amount from your plan that is not a periodic payment, see Taxation of Nonperiodic Payments , later. Federal tax forms In general, you can recover the cost of your pension or annuity tax free over the period you are to receive the payments. Federal tax forms The amount of each payment that is more than the part that represents your cost is taxable (however, see Insurance Premiums for Retired Public Safety Officers , earlier). Federal tax forms Designated Roth accounts. Federal tax forms   If you receive a qualified distribution from a designated Roth account, the distribution is not included in your gross income. Federal tax forms This applies to both your cost in the account and income earned on that account. Federal tax forms A qualified distribution is generally a distribution that is: Made after a 5-tax-year period of participation, and Made on or after the date you reach age 59½, made to a beneficiary or your estate on or after your death, or attributable to your being disabled. Federal tax forms   If the distribution is not a qualified distribution, the rules discussed in this section apply. Federal tax forms The designated Roth account is treated as a separate contract. Federal tax forms Period of participation. Federal tax forms   The 5-tax-year period of participation is the 5-tax-year period beginning with the first tax year for which the participant made a designated Roth contribution to the plan. Federal tax forms Therefore, for designated Roth contributions made for 2013, the first year for which a qualified distribution can be made is 2018. Federal tax forms   However, if a direct rollover is made to the plan from a designated Roth account under another plan, the 5-tax-year period for the recipient plan begins with the first tax year for which the participant first had designated Roth contributions made to the other plan. Federal tax forms   Your 401(k), 403(b), or 457(b) plan may permit you to roll over amounts from those plans to a designated Roth account within the same plan. Federal tax forms This is known as an in-plan Roth rollover. Federal tax forms For more details, see In-plan Roth rollovers , later. Federal tax forms Fully Taxable Payments The pension or annuity payments that you receive are fully taxable if you have no cost in the contract because any of the following situations applies to you (however, see Insurance Premiums for Retired Public Safety Officers , earlier). Federal tax forms You did not pay anything or are not considered to have paid anything for your pension or annuity. Federal tax forms Amounts withheld from your pay on a tax-deferred basis are not considered part of the cost of the pension or annuity payment. Federal tax forms Your employer did not withhold contributions from your salary. Federal tax forms You got back all of your contributions tax free in prior years (however, see Exclusion not limited to cost under Partly Taxable Payments, later). Federal tax forms Report the total amount you got on Form 1040, line 16b; Form 1040A, line 12b; or on Form 1040NR, line 17b. Federal tax forms You should make no entry on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. Federal tax forms Deductible voluntary employee contributions. Federal tax forms   Distributions you receive that are based on your accumulated deductible voluntary employee contributions are generally fully taxable in the year distributed to you. Federal tax forms Accumulated deductible voluntary employee contributions include net earnings on the contributions. Federal tax forms If distributed as part of a lump sum, they do not qualify for the 10-year tax option or capital gain treatment, explained later. Federal tax forms Partly Taxable Payments If you have a cost to recover from your pension or annuity plan (see Cost (Investment in the Contract) , earlier), you can exclude part of each annuity payment from income as a recovery of your cost. Federal tax forms This tax-free part of the payment is figured when your annuity starts and remains the same each year, even if the amount of the payment changes. Federal tax forms The rest of each payment is taxable (however, see Insurance Premiums for Retired Public Safety Officers , earlier). Federal tax forms You figure the tax-free part of the payment using one of the following methods. Federal tax forms Simplified Method. Federal tax forms You generally must use this method if your annuity is paid under a qualified plan (a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity plan or contract). Federal tax forms You cannot use this method if your annuity is paid under a nonqualified plan. Federal tax forms General Rule. Federal tax forms You must use this method if your annuity is paid under a nonqualified plan. Federal tax forms You generally cannot use this method if your annuity is paid under a qualified plan. Federal tax forms You determine which method to use when you first begin receiving your annuity, and you continue using it each year that you recover part of your cost. Federal tax forms If you had more than one partly taxable pension or annuity, figure the tax-free part and the taxable part of each separately. Federal tax forms Qualified plan annuity starting before November 19, 1996. Federal tax forms   If your annuity is paid under a qualified plan and your annuity starting date (defined earlier under Cost (Investment in the Contract) ) is after July 1, 1986, and before November 19, 1996, you could have chosen to use either the Simplified Method or the General Rule. Federal tax forms If your annuity starting date is before July 2, 1986, you use the General Rule unless your annuity qualified for the Three-Year Rule. Federal tax forms If you used the Three-Year Rule (which was repealed for annuities starting after July 1, 1986), your annuity payments are generally now fully taxable. Federal tax forms Exclusion limit. Federal tax forms   Your annuity starting date determines the total amount of annuity payments that you can exclude from income over the years. Federal tax forms Once your annuity starting date is determined, it does not change. Federal tax forms 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. Federal tax forms That recovery period begins on your annuity starting date and is not affected by the date you first complete the worksheet. Federal tax forms Exclusion limited to cost. Federal tax forms   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. Federal tax forms 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. Federal tax forms This deduction is not subject to the 2%-of-adjusted-gross-income limit. Federal tax forms Example 1. Federal tax forms Your annuity starting date is after 1986, and you exclude $100 a month ($1,200 a year) under the Simplified Method. Federal tax forms The total cost of your annuity is $12,000. Federal tax forms Your exclusion ends when you have recovered your cost tax free, that is, after 10 years (120 months). Federal tax forms After that, your annuity payments are generally fully taxable. Federal tax forms Example 2. Federal tax forms The facts are the same as in Example 1, except you die (with no surviving annuitant) after the eighth year of retirement. Federal tax forms You have recovered tax free only $9,600 (8 × $1,200) of your cost. Federal tax forms An itemized deduction for your unrecovered cost of $2,400 ($12,000 – $9,600) can be taken on your final return. Federal tax forms Exclusion not limited to cost. Federal tax forms   If your annuity starting date is before 1987, you can continue to take your monthly exclusion for as long as you receive your annuity. Federal tax forms 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. Federal tax forms The total exclusion may be more than your cost. Federal tax forms 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. Federal tax forms 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. Federal tax forms For any other annuity, this number is the number of monthly annuity payments under the contract. Federal tax forms Who must use the Simplified Method. Federal tax forms   You must use the Simplified Method if your annuity starting date is after November 18, 1996, and you meet both of the following conditions. Federal tax forms You receive your pension or annuity payments from any of the following plans. Federal tax forms A qualified employee plan. Federal tax forms A qualified employee annuity. Federal tax forms A tax-sheltered annuity plan (403(b) plan). Federal tax forms On your annuity starting date, at least one of the following conditions applies to you. Federal tax forms You are under age 75. Federal tax forms You are entitled to less than 5 years of guaranteed payments. Federal tax forms Guaranteed payments. Federal tax forms   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. Federal tax forms 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. Federal tax forms Annuity starting before November 19, 1996. Federal tax forms   If your annuity starting date is after July 1, 1986, and before November 19, 1996, and you chose to use the Simplified Method, you must continue to use it each year that you recover part of your cost. Federal tax forms You could have chosen to use the Simplified Method if your annuity is payable for your life (or the lives of you and your survivor annuitant) and you met both of the conditions listed earlier under Who must use the Simplified Method . Federal tax forms Who cannot use the Simplified Method. Federal tax forms   You cannot use the Simplified Method if you receive your pension or annuity from a nonqualified plan or otherwise do not meet the conditions described in the preceding discussion. Federal tax forms See General Rule , later. Federal tax forms How to use the Simplified Method. Federal tax forms    Complete Worksheet A in the back of this publication to figure your taxable annuity for 2013. Federal tax forms Be sure to keep the completed worksheet; it will help you figure your taxable annuity next year. Federal tax forms   To complete line 3 of the worksheet, you must determine the total number of expected monthly payments for your annuity. Federal tax forms How you do this depends on whether the annuity is for a single life, multiple lives, or a fixed period. Federal tax forms For this purpose, treat an annuity that is payable over the life of an annuitant as payable for that annuitant's life even if the annuity has a fixed-period feature or also provides a temporary annuity payable to the annuitant's child under age 25. Federal tax forms    You do not need to complete line 3 of the worksheet or make the computation on line 4 if you received annuity payments last year and used last year's worksheet to figure your taxable annuity. Federal tax forms Instead, enter the amount from line 4 of last year's worksheet on line 4 of this year's worksheet. Federal tax forms Single-life annuity. Federal tax forms   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. Federal tax forms Enter on line 3 the number shown for your age on your annuity starting date. Federal tax forms This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. Federal tax forms Multiple-lives annuity. Federal tax forms   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. Federal tax forms Enter on line 3 the number shown for the annuitants' combined ages on the annuity starting date. Federal tax forms For an annuity payable to you as the primary annuitant and to more than one survivor annuitant, combine your age and the age of the youngest survivor annuitant. Federal tax forms For an annuity that has no primary annuitant and is payable to you and others as survivor annuitants, combine the ages of the oldest and youngest annuitants. Federal tax forms Do not treat as a survivor annuitant anyone whose entitlement to payments depends on an event other than the primary annuitant's death. Federal tax forms   However, if your annuity starting date is before 1998, do not use Table 2 and do not combine the annuitants' ages. Federal tax forms Instead, you must use Table 1 at the bottom of the worksheet and enter on line 3 the number shown for the primary annuitant's age on the annuity starting date. Federal tax forms This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. Federal tax forms Fixed-period annuity. Federal tax forms   If your annuity does not depend in whole or in part on anyone's life expectancy, the total number of expected monthly payments to enter on line 3 of the worksheet is the number of monthly annuity payments under the contract. Federal tax forms Line 6. Federal tax forms   The amount on line 6 should include all amounts that could have been recovered in prior years. Federal tax forms If you did not recover an amount in a prior year, you may be able to amend your returns for the affected years. Federal tax forms Example. Federal tax forms Bill Smith, age 65, began receiving retirement benefits in 2013 under a joint and survivor annuity. Federal tax forms Bill's annuity starting date is January 1, 2013. Federal tax forms The benefits are to be paid for the joint lives of Bill and his wife, Kathy, age 65. Federal tax forms Bill had contributed $31,000 to a qualified plan and had received no distributions before the annuity starting date. Federal tax forms 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. Federal tax forms 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. Federal tax forms 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 Worksheet A in completing line 3 of the worksheet. Federal tax forms His completed worksheet is shown later. Federal tax forms Bill's tax-free monthly amount is $100 ($31,000 ÷ 310) as shown on line 4 of the worksheet. Federal tax forms Upon Bill's death, if Bill has not recovered the full $31,000 investment, Kathy will also exclude $100 from her $600 monthly payment. Federal tax forms The full amount of any annuity payments received after 310 payments are paid must be included in gross income. Federal tax forms 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. Federal tax forms This deduction is not subject to the 2%-of-adjusted-gross-income limit. Federal tax forms Worksheet A. Federal tax forms Simplified Method Worksheet for Bill Smith 1. Federal tax forms Enter the total pension or annuity payments received this year. Federal tax forms Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Federal tax forms $14,400 2. Federal tax forms Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion. Federal tax forms * See Cost (Investment in the Contract) , earlier 2. Federal tax forms 31,000   Note. Federal tax forms 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). Federal tax forms Otherwise, go to line 3. Federal tax forms     3. Federal tax forms Enter the appropriate number from Table 1 below. Federal tax forms 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. Federal tax forms 310 4. Federal tax forms Divide line 2 by the number on line 3 4. Federal tax forms 100 5. Federal tax forms Multiply line 4 by the number of months for which this year's payments were made. Federal tax forms If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Federal tax forms Otherwise, go to line 6 5. Federal tax forms 1,200 6. Federal tax forms Enter any amount previously recovered tax free in years after 1986. Federal tax forms This is the amount shown on line 10 of your worksheet for last year 6. Federal tax forms -0- 7. Federal tax forms Subtract line 6 from line 2 7. Federal tax forms 31,000 8. Federal tax forms Enter the smaller of line 5 or line 7 8. Federal tax forms 1,200 9. Federal tax forms Taxable amount for year. Federal tax forms Subtract line 8 from line 1. Federal tax forms Enter the result, but not less than zero. Federal tax forms Also, add this amount to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. Federal tax forms Note: If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. Federal tax forms If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers , earlier, before entering an amount on your tax return 9. Federal tax forms $13,200 10. Federal tax forms Was your annuity starting date before 1987? □ Yes. Federal tax forms STOP. Federal tax forms Do not complete the rest of this worksheet. Federal tax forms  ☑ No. Federal tax forms Add lines 6 and 8. Federal tax forms This is the amount you have recovered tax free through 2013. Federal tax forms You will need this number if you need to fill out this worksheet next year 10. Federal tax forms 1,200 11. Federal tax forms Balance of cost to be recovered. Federal tax forms Subtract line 10 from line 2. Federal tax forms If zero, you will not have to complete this worksheet next year. Federal tax forms The payments you receive next year will generally be fully taxable 11. Federal tax forms $29,800         * A death benefit exclusion (up to $5,000) applied to certain benefits received by employees who died before August 21, 1996. Federal tax forms           Table 1 for Line 3 Above       AND your annuity starting date was—     IF the age at annuity starting date was. Federal tax forms . Federal tax forms . Federal tax forms BEFORE November 19, 1996, enter on line 3. Federal tax forms . Federal tax forms . Federal tax forms AFTER November 18, 1996, enter on line 3. Federal tax forms . Federal tax forms . Federal tax forms     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. Federal tax forms . Federal tax forms . Federal tax forms THEN enter on line 3. Federal tax forms . Federal tax forms . Federal tax forms     110 or under   410     111-120   360     121-130   310     131-140   260     141 or older   210   Multiple annuitants. Federal tax forms   If you and one or more other annuitants receive payments at the same time, you exclude from each annuity payment a pro rata share of the monthly tax-free amount. Federal tax forms Figure your share by taking the following steps. Federal tax forms Complete your worksheet through line 4 to figure the monthly tax-free amount. Federal tax forms Divide the amount of your monthly payment by the total amount of the monthly payments to all annuitants. Federal tax forms Multiply the amount on line 4 of your worksheet by the amount figured in (2) above. Federal tax forms The result is your share of the monthly tax-free amount. Federal tax forms   Replace the amount on line 4 of the worksheet with the result in (3) above. Federal tax forms Enter that amount on line 4 of your worksheet each year. Federal tax forms General Rule Under the General Rule, you determine the tax-free part of each annuity payment based on the ratio of the cost of the contract to the total expected return. Federal tax forms Expected return is the total amount you and other eligible annuitants can expect to receive under the contract. Federal tax forms To figure it, you must use life expectancy (actuarial) tables prescribed by the IRS. Federal tax forms Who must use the General Rule. Federal tax forms   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. Federal tax forms Annuity starting before November 19, 1996. Federal tax forms   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. Federal tax forms You also had to use it for any fixed-period annuity. Federal tax forms If you did not have to use the General Rule, you could have chosen to use it. Federal tax forms 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. Federal tax forms   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. Federal tax forms Who cannot use the General Rule. Federal tax forms   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. Federal tax forms See Simplified Method , earlier. Federal tax forms More information. Federal tax forms   For complete information on using the General Rule, including the actuarial tables you need, see Publication 939. Federal tax forms Taxation of Nonperiodic Payments This section of the publication explains how any nonperiodic distributions you receive under a pension or annuity plan are taxed. Federal tax forms Nonperiodic distributions are also known as amounts not received as an annuity. Federal tax forms They include all payments other than periodic payments and corrective distributions. Federal tax forms For example, the following items are treated as nonperiodic distributions. Federal tax forms Cash withdrawals. Federal tax forms Distributions of current earnings (dividends) on your investment. Federal tax forms However, do not include these distributions in your income to the extent the insurer keeps them to pay premiums or other consideration for the contract. Federal tax forms Certain loans. Federal tax forms See Loans Treated as Distributions , later. Federal tax forms The value of annuity contracts transferred without full and adequate consideration. Federal tax forms See Transfers of Annuity Contracts , later. Federal tax forms Corrective distributions of excess plan contributions. Federal tax forms   Generally, if the contributions made for you during the year to certain retirement plans exceed certain limits, the excess is taxable to you. Federal tax forms To correct an excess, your plan may distribute it to you (along with any income earned on the excess). Federal tax forms Although the plan reports the corrective distributions on Form 1099-R, the distribution is not treated as a nonperiodic distribution from the plan. Federal tax forms It is not subject to the allocation rules explained in the following discussion, it cannot be rolled over into another plan, and it is not subject to the additional tax on early distributions. Federal tax forms    If your retirement plan made a corrective distribution of excess amounts (excess deferrals, excess contributions, or excess annual additions), your Form 1099-R should have the code “8,” “B,” “P,” or “E” in box 7. Federal tax forms   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. Federal tax forms Figuring the Taxable Amount 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. Federal tax forms 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. Federal tax forms 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. Federal tax forms You may be able to roll over the taxable amount of a nonperiodic distribution from a qualified retirement plan into another qualified retirement plan or a traditional IRA tax free. Federal tax forms See Rollovers, later. Federal tax forms If you do not make a tax-free rollover and the distribution qualifies as a lump-sum distribution, you may be able to elect an optional method of figuring the tax on the taxable amount. Federal tax forms See Lump-Sum Distributions, later. Federal tax forms Annuity starting date. Federal tax forms   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. Federal tax forms Distributions of employer securities. Federal tax forms    If you receive a distribution of employer securities from a qualified retirement plan, you may be able to defer the tax on the net unrealized appreciation (NUA) in the securities. Federal tax forms The NUA is the net increase in the securities' value while they were in the trust. Federal tax forms This tax deferral applies to distributions of the employer corporation's stocks, bonds, registered debentures, and debentures with interest coupons attached. Federal tax forms   If the distribution is a lump-sum distribution, tax is deferred on all of the NUA unless you choose to include it in your income for the year of the distribution. Federal tax forms    A lump-sum distribution for this purpose is the distribution or payment of a plan participant's entire balance (within a single tax year) from all of the employer's qualified plans of one kind (pension, profit-sharing, or stock bonus plans), but only if paid: Because of the plan participant's death, After the participant reaches age 59½, Because the participant, if an employee, separates from service, or After the participant, if a self-employed individual, becomes totally and permanently disabled. Federal tax forms    If you choose to include NUA in your income for the year of the distribution and the participant was born before January 2, 1936, you may be able to figure the tax on the NUA using the optional methods described und