Instructions For Form 1040 - U.s. Individual Income Tax Return - 2017 Page 27

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2017 Form 1040—Lines 16a Through 19
You can ask the IRS to figure the tax-
1. Your annuity starting date was af-
tributions. Your net investment may be
able part for you for a $1,000 fee. For
ter July 1, 1986, and you used this meth-
shown in box 9b of Form 1099-R.
details, see Pub. 939.
od last year to figure the taxable part.
Rollovers
If your Form 1099-R shows a taxable
2. Your annuity starting date was af-
amount, you can report that amount on
ter November 18, 1996, and both of the
Generally, a rollover is a tax-free distri-
line 16b. But you may be able to report a
following apply.
bution of cash or other assets from one
lower taxable amount by using the Gen-
retirement plan that is contributed to an-
a. The payments are from a quali-
eral Rule or the Simplified Method or if
other plan within 60 days of receiving
fied employee plan, a qualified employ-
the exclusion for retired public safety of-
the distribution. However, a rollover to a
ee annuity, or a tax-sheltered annuity.
ficers, discussed next, applies.
Roth IRA or a designated Roth account
b. On your annuity starting date, ei-
is generally not a tax-free distribution.
ther you were under age 75 or the num-
Insurance Premiums for Retired
Use lines 16a and 16b to report a roll-
ber of years of guaranteed payments was
Public Safety Officers
over, including a direct rollover, from
fewer than 5. See Pub. 575 for the defi-
one qualified employer's plan to another
nition of guaranteed payments.
If you are an eligible retired public safe-
or to an IRA or SEP.
ty officer (law enforcement officer, fire-
If you must use the Simplified Meth-
Enter on line 16a the distribution
fighter, chaplain, or member of a rescue
od, complete the Simplified Method
from Form 1099-R, box 1. From this
squad or ambulance crew), you can elect
Worksheet in these instructions to figure
amount, subtract any contributions (usu-
to exclude from income distributions
the taxable part of your pension or annu-
ally shown in box 5) that were taxable to
made from your eligible retirement plan
ity. For more details on the Simplified
you when made. From that result, sub-
that are used to pay the premiums for
Method, see Pub. 575 (or Pub. 721 for
tract the amount of the rollover. Enter
coverage by an accident or health plan
U.S. Civil Service retirement benefits).
the remaining amount on line 16b. If the
or a long-term care insurance contract.
If you received U.S. Civil Serv-
remaining amount is zero and you have
You can do this only if you retired be-
!
no other distribution to report on
ice retirement benefits and you
cause of disability or because you
line 16b, enter -0- on line 16b. Also, en-
chose the alternative annuity
reached normal retirement age. The pre-
CAUTION
option, see Pub. 721 to figure the taxa-
ter "Rollover" next to line 16b.
miums can be for coverage for you, your
ble part of your annuity. Do not use the
spouse, or dependents. The distribution
See Pub. 575 for more details on roll-
Simplified Method Worksheet in these
must be from a plan maintained by the
overs, including special rules that apply
instructions.
employer from which you retired as a
to rollovers from designated Roth ac-
public safety officer. Also, the distribu-
counts, partial rollovers of property, and
tion must be made directly from the plan
distributions under qualified domestic
Annuity Starting Date
to the provider of the accident or health
relations orders.
Your annuity starting date is the later of
plan or long-term care insurance con-
the first day of the first period for which
tract. You can exclude from income the
Lump-Sum Distributions
you received a payment or the date the
smaller of the amount of the premiums
If you received a lump-sum distribution
plan's obligations became fixed.
or $3,000. You can make this election
from a profit-sharing or retirement plan,
only for amounts that would otherwise
your Form 1099-R should have the "To-
Age (or Combined Ages) at
be included in your income.
tal distribution" box in box 2b checked.
Annuity Starting Date
An eligible retirement plan is a gov-
You may owe an additional tax if you
ernmental plan that is a qualified trust or
If you are the retiree, use your age on
received an early distribution from a
a section 403(a), 403(b), or 457(b) plan.
the annuity starting date. If you are the
qualified retirement plan and the total
survivor of a retiree, use the retiree's age
If you make this election, reduce the
amount wasn't rolled over. For details,
on his or her annuity starting date. But if
otherwise taxable amount of your pen-
see the instructions for line 59.
your annuity starting date was after 1997
sion or annuity by the amount excluded.
Enter
the
total
distribution
on
and the payments are for your life and
The amount shown in box 2a of Form
line 16a and the taxable part on line 16b.
that of your beneficiary, use your com-
1099-R doesn't reflect the exclusion. Re-
For details, see Pub. 575.
bined ages on the annuity starting date.
port your total distributions on line 16a
If you or the plan participant
and the taxable amount on line 16b. En-
If you are the beneficiary of an em-
was born before January 2,
TIP
ter “PSO” next to line 16b.
ployee who died, see Pub. 575. If there
1936, you could pay less tax on
is more than one beneficiary, see Pub.
If you are retired on disability and re-
the distribution. See Form 4972.
575 or Pub. 721 to figure each benefi-
porting your disability pension on line 7,
ciary's taxable amount.
include only the taxable amount on that
Line 19
line and enter “PSO” and the amount ex-
Cost
cluded on the dotted line next to line 7.
Unemployment
Your cost is generally your net invest-
Simplified Method
Compensation
ment in the plan as of the annuity start-
ing date. It doesn't include pre-tax con-
You must use the Simplified Method if
You should receive a Form 1099-G
either of the following applies.
showing in box 1 the total unemploy-
-27-
Need more information or forms? Visit IRS.gov.

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