No, you do not
use the average final compensation amount as the plan cost at annuity start
date.
The plan cost at annuity start date refers
to your total after-tax contributions in the plan.
If you did not make
any after-tax contribution to the retirement plan, then you would enter “0”
for the plan cost at annuity start date.
If this is the first year you are receiving distributions
from the retirement plan and you did make after-tax contributions, the plan
cost (your after-tax contributions) may be listed in box 9b of your Form 1099-R.
If the information is not listed
there and you are not sure whether you made any after-tax contributions to the
plan, you should contact your plan administrator.
