Ftb Pub. 1005 - Pension And Annuity Guidelines - Franchise Tax Board (Page 7 of 8) in pdf

Exception: If you made voluntary contributions

of an early distribution from a SIMPLE plan dur-

Additional Information

that were not deductible on your federal and

ing the first two-year period beginning on the

California returns, do not include the amount of

date the taxpayer first began participation in the

Where To Get Income Tax Forms

the voluntary contributions in your California

plan. The tax on early distribution is imposed in

basis. The recovery of the voluntary contributions

addition to any regular California income tax on

By Internet – If you have Internet access you

for California is treated the same as the recovery

the distribution. You must figure this tax on form

may download, view and print California income

for federal purposes. Do not make an adjustment

FTB 3805P, Additional Taxes Attributable to

tax forms and publications. Our Internet address

IRAs, Other Qualified Retirement Plans, Annui-

on Schedule CA (540 or 540NR) or Form 540A,

is:

Side 2, Part I, line 5 or line 6 to recover your vol-

ties, Modified Endowment Contracts and MSAs.

untary contributions.

Exceptions: The tax on early distributions does

By phone – Use F.A.S.T. to order 1998 tax

not apply to:

forms. Call (800) 338-0505 and follow the

Lump-sum Distribution

•

The portion of the distribution that is a return

recorded instructions. F.A.S.T. is available from

If you received a qualified lump-sum distribution

of basis;

6 a.m. to 12 midnight Monday through Friday,

•

and are using Schedule G-1, follow the revised

Distributions made because you became

except state holidays and 6 a.m. until 10 p.m.

instructions below when completing Worksheet I

disabled;

Saturday and Sunday. Please allow 2 weeks to

•

– Part B:

Distributions made as a part of a series of

receive your order. If you live outside of Califor-

•

substantially equal payments made for the life

nia, please allow 3 weeks to receive your order.

Line 1. Enter the taxable distribution from

(or joint lives) of you and your designated

your federal Form 1099-R, box 2a.

In person – Most libraries, post offices and

•

beneficiaries;

Line 3. Enter the smaller of line 1 or line 2.

banks provide free California tax booklets during

•

Distributions made after the death of the

Compute the amounts to enter on Schedule

the filing season. Many libraries and some quick

participant;

G-1 as follows:

print businesses have forms and schedules for

•

Distributions made to you to the extent you

you to photocopy (you may have to pay a nomi-

California

federal

Worksheet I

have medical expenses deductible under IRC

nal fee). Note that employees at libraries, post

taxable

= Form 1099-R,

– Part B,

Section 213 (whether or not you itemize your

offices, banks and quick print businesses cannot

amount

box 2a

line 3

deductions);

provide tax information or assistance.

•

Distributions made to unemployed individuals

Enter the California taxable distribution on

By mail – Write to: TAX FORMS REQUEST

for health insurance premiums under IRC

Schedule G-1, line 10 unless the capital gain

UNIT, FRANCHISE TAX BOARD, PO BOX 307,

Section 72(t)(2)(D);

election was made. If the capital gain election

•

RANCHO CORDOVA CA 95741-0307.

Distributions made for qualified higher educa-

was made:

tion expenses;

Letters. We can serve you by phone if you call

•

Sch. G-1,

California

federal

Distributions of up to $10,000 made for first

us for information to complete your California

line 8

= taxable

Form 1099-R,

home purchases;

income tax return or to find out about your tax

•

amount

box 3

Distributions made to you after you separated

refund. However, you may want to write us if you

federal

from service with your employer in or after

are replying to a notice we sent you or to get a

Form 1099-R,

the year in which you reached age 55; or

written reply. If you write to us, be sure to include

•

box 2a

Distributions paid under a qualified domestic

your social security number, your daytime and

relations order.

evening telephone numbers and a copy of the

notice with your letter. Send your letter to:

Sch. G-1,

California

Sch. G-1,

Note: The last two exceptions do not apply to

line 10

= taxable

–

line 8

distributions from IRAs or annuity or modified

FRANCHISE TAX BOARD

amount

endowment contracts. They apply only to distri-

PO BOX 942840

butions from qualified employee plans.

SACRAMENTO CA 94240-0040

Change in Residency

Prohibited Transactions. You may also owe tax

We will acknowledge receipt of your letter within

on early distributions from an IRA or SEP if you

six to eight weeks. In some cases, we may need

California Resident. A California resident is

enter into a prohibited transaction. If you enter

to call you for additional information.

taxed on all income, regardless of its source. If

into a prohibited transaction, your IRA ceases to

you are a California resident and receive a

General Toll-Free Phone Service

be an IRA on the first day of the taxable year

Keogh distribution attributable to your non-

Between January 4 – April 15, 1999, our gen-

and you are considered to have received a distri-

California self-employment income, your distribu-

eral toll-free phone service is available:

bution of the entire value of your IRA. If you are

tion minus your California basis is taxable by

•

under age 59

⁄

on the first day of the taxable

Monday – Friday, 6 a.m. until midnight; and

California.

•

year, you are subject to the tax on early distribu-

Saturdays, 8 a.m. until 5 p.m.

Nonresident of California. California does not

tions. Get form FTB 3805P for more information.

After April 15, 1999, our general toll-free phone

impose tax on retirement income, including

service is available:

income from a Keogh plan, received by a non-

•

H California Credits

Monday – Friday, 7 a.m. until 8 p.m.

resident after 12/31/95.

The best times to call are before 10 a.m. and

Other State Tax Credit

after 6 p.m.

G Tax On Early Distributions

From within the

If you paid tax to California and to another state

California has a tax on early distributions from

United States . . . . . . . . . .

(800) 852-5711

on the same pension income prior to 1996, you

IRAs, any qualified retirement plans, annuities

From outside the

may qualify for a credit for taxes paid to another

and modified endowment contracts. This tax is

United States . . . . . . . . . .

(916) 845-6500

state. For more information get Schedule S,

generally the same as federal except the

(not toll-free)

Other State Tax Credit.

California tax rate is 2

⁄

% rather than 10%,

For hearing impaired

except for early distributions from SIMPLE plans

with TDD . . . . . . . . . . . .

(800) 822-6268

Exemption Credit for Seniors Age

during the two-year period beginning on the date

For federal tax questions,

65 or Older

the taxpayer first began participation in the plan.

call the IRS at . . . . . . . . .

(800) 829-1040

In that case, the tax rate is 6% rather than 25%.

California allows an additional exemption credit

Asistencia Bilingu ¨ e en Espan ˜ ol

California does not have taxes similar to the fed-

for individuals age 65 or older rather than the

Para obtener servicios en Espan ˜ ol y asistencia

eral tax on excess accumulations, tax on excess

larger standard deduction allowed on the federal

para completar su declaracio ´ n de

contributions or tax on excess distributions.

return. Be sure to claim this credit on your Cali-

impuestos/formularios, llame al nu ´ mero de

Early Distributions. Early distributions are

fornia income tax return.

tele ´ fono (anotado arriba) que le corresponde.

amounts you withdraw from your qualified retire-

ment plan, annuity or modified endowment

⁄

. The tax on

contract before you are age 59

early distributions is 2

⁄

% of the amount of the

distribution included in income or 6% in the case

FTB Pub. 1005 (REV. 1998)

Page 7

Ftb Pub. 1005 - Pension And Annuity Guidelines - Franchise Tax Board Page 7

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