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Get your taxes done using TurboTax
You should be able to continue using the Simplified Method.
The General Rule and Simplified Method are the same.
He should have been reporting the same dollar amount as the return of employee contribution (the tax-free portion)
The only difference is that Pre-1987 does not have a limit to the return of employee contribution.
According to the IRS:
"Under both the General Rule and the Simplified Method, each of your monthly annuity payments is made up of two parts: the tax-free part that is a return of your cost, and the taxable part that is the amount of each payment that is more than the part that represents your cost
(unless such payment is used for purposes discussed under Distributions Used To Pay Insurance Premiums for Public Safety Officers, later).
The tax-free part is a fixed dollar amount. It remains the same, even if your annuity is increased. Generally, this rule applies as long as you receive your annuity. "
"Annuity starting date before 1987.
If your annuity starting date is before 1987, you can continue to take your monthly exclusion figured under the General Rule or Simplified Method for as long as you receive your annuity.
If you chose a joint and survivor annuity, your survivor can continue to take that same exclusion. The total exclusion
may be more than your cost."
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