I have a client that states on form rrb 1099 r, the box 4 amount ( contributory amount paid) is not taxable as that money was already taxed when it was contributed. The IRS publication dealing with this is not very clear. Any ideas?
-
-
The short answer is that box 4 is what is termed a "contributory" pension. How much the taxpayer ultimately is going to receive depends on how long they live though -- not the amount of their contributions. If you have the employee contributions amount (box 3) you should be able to use the simplified method to calculate the taxable amount of the pension.
If you have nothing in box 3 then it's all taxable.
Gets a little stickier if the pension started in 1996 or earlier.Last edited by David1980; 03-30-2008, 02:58 PM. -
I read that form but it does not explain how to determine what is taxable.Comment
-
Have a look at
page 13-20 in TTB.Comment
Comment