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    Government Retirement 1099-R Question

    Client retired from U S Government, received a 1099R. The following figures are in the listed boxes:

    Box 1 Gross Distribution 22728.00
    Box 2A Taxable amount 22429.44
    Box 5 Employee Contributions/Designated ROTH Contributions or Insurance Premiums 5237.86
    Box 9b Total Employee Contributions 8958.00

    Client thinks box 5 is health insurance premiums they are paying. I have looked at several different
    definitions from google. They seem to conflict, but some are saying that it is the difference between
    Gross in box 1 and taxable in box 2A. This is obviously not the case here. I have tried looking at the
    website but there is nothing I can find about box 9b compared with box 5.

    Can some of you experts shed any light on this for me?

    Thanks
    Only in government or politics is a "cut in spending" really an increase. It's just not as much of an increase as they wanted it to be, therefore a "cut".

    #2
    Well, $298.56 of that represents the retiree's basis recovery ... 1/30th (12/360) of his total contributions ($8,958 ÷ 360 × 12). This is the required contribution recovery period for a retiree age 55 or less. (Code §72(d)(1)(B)(iii)) (If paid over the lives of two people, the periods are a little different.)

    The rest of that $5,237.86 may very well be health insurance premiums, but it doesn't matter because it is non-taxable. If you enter the amounts on the correct lines of your tax prep software, you should see $22,728 ending up on F-1040, line 16a and $22,429 on line 16b.
    Roland Slugg
    "I do what I can."

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