This is exclusive to MD. any other 1099-R will say: 17 Local tax withheld and 19 Local distribution. If you have local taxes, enter them on the Federal return, but enter the new MD form on your state return. Pick-up Contributions
BLOCK 17: (Pick-Up Contributions)
This figure applies to members whose employers participated in the State Pick-up Program. For an explanation of pick-up contributions, see “State Retirement Pick-up and your taxes” on page 4 of the January 2015 Retiree News & Notes newsletter.
Important: Change to Block 17 (Pick-Up Contributions) for calendar year 2014
Retirees receiving a 1099-R form based on a disability retirement that commenced before January 1, 1995, will notice a change in Block 17. On prior 1099-R forms, the original amount of the retiree’s state pick-up contributions has been reported in Block 17. Beginning with the 1099-R form for 2014, “EP USED” will be reported in Block 17 for these retirees. This new reporting is based on the assumption that retirees, by this time, have recovered their pick-up contributions.
