Alan S. wrote: For qualified plans, the plan will break out the taxable amount and show it in Box 2a.
Thank goodness. 35 years ago, our contribution to CalPERS were post tax; that changed a few years later (tax law?). My 2011 1099-R told me that 158.88 was not taxable. I am glad I didn't have to calculate that for myself.
Actually, it isn't THAT hard:
CalPERS uses the Simplified Safe Harbor Method tables in Internal Revenue Service (IRS) Publication 575, to determine the tax-free portion of your allowance. For retirements effective on or after January 1, 1998, use one of the following tables to determine the number of your lifetime payments. Divide the amount of your “Taxed Contributions” by the “Number of Lifetime Payments” to get your monthly tax-free allowance amount.
My table (joint life):
- Code: Select all
￼Combined Ages Number of
of Annuitants Lifetime Payments
110 or less 410
￼141 or more 210
I checked one year, and they were doing it right, so I haven't bothered to check them again. Actually, I haven't checked since the divorce and the division of the pension. Should I use the single life table now? Since all my post-tax contributions were before the marriage, do I get all of them? I guess I could ask my ex if all of her pension is taxable. Ah, the mysteries of life and tax law.