AmyC
Expert Alumni

Retirement tax questions

Yes, your employer funded annuity is taxable to the federal government. See DC 37 Benefits: Annuity Fund Plan. Which states:

The Plan and the Annuity Fund are intended to satisfy the tax qualification requirements under sections 401(a) and 501(a) of the Internal Revenue Code as a governmental retirement plan.

 

For NY, your pension income is not taxable in New York State when it is paid by: New York State or local government. the federal government, including Social Security benefits. certain public authorities.  See Information for retired persons - Department of Taxation for full details.

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