TRS is a defined benefit plan, with retirement benefits determined by
a pre-established formula. The plan is administered as a qualified
governmental retirement plan under the provisions of the U.S. Internal
Revenue Code, Section 401(a). In addition, monthly member contributions are made on a pre-tax basis, meaning
that at the time you receive your salary, you do not pay federal income
tax on the portion of your salary used to make the contributions.
Federal income tax on the contributions and interest is deferred until
you receive a distribution from TRS, such as a refund or a retirement
annuity. Amounts accumulated in your member account or your retirement
benefits become taxable income in the years in which they are paid to
you. As a governmental plan, TRS is not an “ERISA” (1) plan under the
federal Employees Retirement Income Security Act of 1974.
(1) ERISA is a federal law that sets minimum standards for pension plans in private industry.
To enter a form 1099-R
- Click on Federal Taxes
- Click on Wages and Income
- Click on I'll choose what I work on
- Scroll down to Retirement Plans and Social Security
- On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button
