I receive a 1099-R for my Government pension. On the 1099-R worksheet, I see there is a calculation for an "Age Factor" that appears to, in my case, reduce my taxable income on line 5b of the 1040.
6 Age (or combined ages) at annuity starting date 56
7 Age factor (payment months) 310
8 Divide line 5 (Block 9b of 1099-R) by line 7 632.64
9 Number of months for which payments were made in 2020 12
10 Multiply line 8 by line 9 $7,592
This amount is then deducted from my "Gross distribution" in Block 1 of the 1099-R which brings the taxable amount to less than what is in block 2a on my 1099-R by a little over $1,000. What is the purpose of this calculation? How is the "Age Factor" determined?
