The is not the first year I've received a 1099-R, however I was just told that the amount shouldn't be considered income.
SEC. 1528. SURVIVOR BENEFITS FOR PUBLIC SAFETY OFFICERS KILLED IN THE
LINE OF DUTY.
(a) In General.--Section 101 (relating to certain death benefits) is
amended by adding at the end the following new subsection:
``(h) Survivor Benefits Attributable to Service by a Public Safety
Officer who is Killed in the Line of Duty.--
``(1) In general.--Gross income shall not include any amount
paid as a survivor annuity on account of the death of a public
safety officer (as such term is defined in section 1204 of the
Omnibus Crime Control and Safe Streets Act of 1968) killed in
the line of duty
