- Since you're getting a pension from your employer, you'll likely want to use the Simplified Method for reporting it on your Form 1040. This method is easier and uses a worksheet to figure out the tax-free part of your payments. You can find more details and a worksheet in Topic No. 411.
- However, if your plan is nonqualified, you should use the General Rule, which calculates the tax-free part based on your investment in the contract and the total expected return. For more info, check out Publication 939.
February 8, 2025
8:11 PM
