Schedule J (Form N-11/n-12/n-15/n-40) - Supplemental Annuities Schedule

SCHEDULE J (FORM N-11/N-12/N-15/N-40) INSTRUCTIONS

deducted again.

4. A pension plan to which NO employee contributions were made (i.e.

the employer paid for the entire cost of the pension) if distributions

Note: Effective January 1, 1998, section 18-235-7-03(c), Hawaii Ad-

are made for any reason other than because of retirement or the

ministrative Rules, was amended to clarify that pension plan distributions

⁄

attainment of age 70

(e.g., you quit, were laid off or fired, the plan

in 1998 and subsequent years are exempt from the Hawaii income tax

was terminated, etc.). The full amount received is taxable and must

when the distributions are attributable to certain employer contributions.

be reported on Form N-12, lines 15a and 15b, or Form N-15, line

The purpose of the amended rule is to exempt distributions attributable

16, Column A. If you are filing Form N-11, the taxable amount

to employer contributions, notwithstanding the employer’s choice of

should have already been included in the amount reported as federal

entity for doing business (i.e., sole proprietorship, S corporations, part-

adjusted gross income on line 7.

nerships, and limited liability companies).

5. The state retirement system or any other public retirement system.

WHO MUST USE THIS FORM

These amounts are not subject to Hawaii’s personal net income tax.

If you are filing Form N-11, the amount reported as taxable for

You MUST use this form if you received payment from any of the

federal should be included on Form N-11, line 13.

following:

If you have received a lump-sum distribution, also see Form N-152,

1. A privately purchased annuity. The portion of your cost included in

Tax on Lump-Sum Distributions.

each distribution may be excluded.

See Administrative Rules section 18-235-7-01 through 18-235-7-03 for

2. A profit-sharing plan to which employee contributions were made.

further information.

Only the increase in the value of the plan attributable to your

contributions is taxable.

LINE-BY-LINE INSTRUCTIONS

3. A death benefit as a beneficiary of a deceased employee.

PART I — COMPUTATION OF THE ANNUAL PENSION

EXCLUSION —

4. A pension plan to which employee contributions were made (i.e.

Use this part to compute the amount of the

nontaxable portion of pension or annuity payments received each year.

both the employee and the employer contributed towards the cost

of the pension). Only the increase in the value of the plan attributable

This Part must be completed only in the first year a distribution is

to your contributions is taxable.

received. The computations made in this Part will not change from year

5. A qualified retirement plan in the form of a lump-sum and you are

to year. Keep a copy of this Part since you will need the information each

year a distribution is received to compute the taxable portion of the

using Form N-152 to make a capital gain election or to use the 5- or

distribution.

10-year averaging method to report the lump-sum distribution.

Line 1. Annual annuity —

Enter the amount you will receive each year.

6. A hybrid plan which is partly pension and partly deferred compen-

If you received a distribution for only part of a year, report an amount that

sation, such as a 401(k) plan with a profit-sharing component or

reflects what you would have received had distributions been made for

employer matching program, an SEP plan with employer contribu-

tions as well as salary reduction option, or any similar hybrid plan.

a 12 month period.

Include on this line only amounts that are fixed and definite. Any

If you did not contribute to the cost of your annuity that is not a part of

indefinite or varying amounts should be included in Part II, line 16.

an employer’s pension plan or you recovered your entire cost before July

1, 1989, under the prior three year recovery rule, report your total annuity

If you are using this form to determine the taxable amount of a

received this year on Form N-12, lines 15a and 15b or Form N-15, line

lump-sum distribution to be reported on Form N-152, enter on line 1 the

16, Column A. If you are filing Form N-11, the taxable amount should

total amount of the distribution. If you are electing to include in taxable

have already been included in the amount reported as federal adjusted

income this year the net unrealized appreciation (NUA) of your em-

gross income on line 7.

ployer’s securities received as part of the distribution, include on this line

the appropriate amount from the box which is your NUA in employer’s

If you receive benefits from more than one plan, a separate Schedule

securities on federal Form 1099-R.

J must be completed for each plan.

Line 2. Multiple —

Enter the multiple used for federal purposes to

WHO SHOULD NOT USE THIS FORM

determine the expected return on the contract. This number represents

DO NOT use this form if you received a payment from any of the

the expected number of years that the annuity will be paid based on your

following:

age and other factors. See the discussion regarding Expected Return

and actuarial tables in Internal Revenue Service Publication 939.

1. An annuity you receive which is NOT part of your employer’s

pension plan AND to which no employee contributions were made.

If you are using this form to determine the taxable amount of a

The full amount received is taxable and must be reported on Form

lump-sum distribution to be reported on Form N-152, enter “1” on this

N-12, lines 15a and 15b, or Form N-15, line 16, column A. If you

line.

are filing Form N-11, the taxable amount should have already been

Line 4a. Employee’s contributions which were previously taxed —

included in the amount reported as federal adjusted gross income

This includes premiums, contributions, or other amounts paid including

on line 7.

amounts your employer contributed if you were required to include these

2. An annuity you receive which is NOT part of your employer’s

amounts in income.

pension plan in which the cost to you was recovered before July 1,

Do NOT include amounts paid for health and accident benefits or

1989, under the three year recovery rule formerly permitted. The

deductible voluntary employee contributions. Also do NOT include any

full amount received is taxable and must be reported on Form N-12,

refunded premiums, rebates, dividends, or unrepaid loans (any of which

lines 15a and 15b, or Form N-15, line 16, Column A. If you are filing

were not included in your income) that you received before the later of

Form N-11, the taxable amount should have already been included

the annuity starting date or the date on which you received your first

in the amount reported as federal adjusted gross income on line 7.

payment. Finally, do NOT include any additional premiums paid for

3. A pension plan to which NO employee contributions were made (i.e.

double indemnity or disability benefits and any other amounts received

the employer paid for the entire cost of the pension) if distributions

under the contract or plan before the later of the above dates that you

are made after retiring or after attaining the age of 70-1/2. The

did not have to include in your income.

entire amount is NOT subject to Hawaii taxation and need not be

Your employer or the organization that pays you the benefits (the plan

reported. If you are filing Form N-11, the amount reported as taxable

administrator) should be able to tell you what your cost in the plan is.

for federal should be included on Form N-11, line 13.

Schedule J (Form N-11/n-12/n-15/n-40) - Supplemental Annuities Schedule - 1998 Page 2

Related Articles

Related forms

Related Categories