For a retired federal employee, is the amount in box 5 of the 1099R from OPM the amount paid for health insurance?

[MichaelL1 · Accepted solution]

Yes, it is the health insurance premiums/or a employee contribution (Roth) in box 5 of the CSR-1099R.

EDITED: 2-19/2019 3:35 PM (CST).

[tjw1]

Turbo Tax asks "how much of your box 5 amount is for health insurance."    

[tjw1]

Turbo Tax asks "how much of your box 5 amount is for health insurance." 

what part of box 5 is health insurance?

[MaryK4]

In general, OPM Box 5 is health insurance deduction only, but you should contact them if you are not sure.  See Get your 1099-R tax form (Look for Get your annual sum of payment)

Employee contributions occur when you contribute to your own retirement account as an after tax contribution. When you take the money out, it may be tax-free. This could also represent the basis you have in your designated Roth account. The designated Roth after tax contributions may be taken out tax-free.

 It could also be the portion of your insurance premiums you paid that can be taken out tax-free. Another entry could be the nontaxable portion of a charitable gift annuity.

@tjw1

[tax372tink]

Thanks, I finally know what that box 5 is.  Now, is it deductible somehow ?  

Also, Box 9b Total Employee Contributions is the total amount of money put in from paychecks each time and was TAXED.  Can this be rolled over to an account that actually makes some interest for me?

It just sits there, does not grow interest, and they give it out to me in small increments that I have to be 93 by they time I have it all.  I could use it now to fix my house and have decent home to live in.

Hope you can please give me some insight or a place to go for answers.. OPM is very hard to understand.

[macuser_22]

That is probably a CSA 1099-R from OPM.

The taxable amount in box 2a is usually the box 1 amount unless you have after-tax contributions in the retirement plan and use the simplified method. If this is NOT the first year of receiving payments, then you should use the same method that was used last year - either the box 1 amount or the simplified method, using the carry forward simplified information from last year.

If box 2a is blank or UNKNOWN then there should be amount in box 9b to use with the simplified method. If no amount in 9b then contact OPM to find the account "basis".

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

[Iknot_7-1]

Can a retiree with a civil service retirement (CSR not FERS) pension take a medical expense deduction for FEHB health insurance premiums deducted from the monthly benefit?  FEHB means Federal Employee Health Benefits but retirees can also have FEHB policies subsidized but not fully paid for by the government.

I m not  tax expert. My explanation should not be relied on unless you find an expert who agrees.,

CSA 1099-R is definitely confusing. The language of Box 5 suggests it is related to calculating the taxable amount in Box 2a. That is not correct. This long-winded answer It is based primarily on the information sheet from OPM that comes with the CSA 1099-R.

The taxable amount in Box 2a is determined by subtracting from the gross distribution (Box 2) a portion of the basis shown in Box 9b.

For almost all employees who retired after November 18, 1996, OPM uses the simplified method to calculate an amount of non-taxable basis that is subtracted from the gross distribution (Box 2) to produce the taxable amount (Box 2a). (I don't know for sure whether the payroll deductions were income-taxed originally, but the subtraction suggests they were.)

For other retirees, the taxable amount box will usually show "Unknown."

The upshot is that Box 5 shows things other than the amount of basis subtracted from the gross distribution (Box 2) to produce the taxable amount in Box 2a. 

"Employee contributions" in Box 5 are voluntary contributions made in addition to required deductions or payments. If you do not have those voluntary contributions or Designated ROTH contributions, then the amount in Box 5 is insurance premiums paid from your annuity. FEHB health insurance premiums are not deducted from your annuity to reduce your taxable amount.

I think this means they are taxed and should be available as a medical expense deduction. If I remember correctly, the question or statement in TurboTax says you cannot deduct pre-tax premium payments. In this regard, other rules also confuse the issue. FEHB health insurance premiums paid from your salary while still employed by the federal government are pre-tax payments. That rule does not apply after retirement except for a few categories of federal retirees.

[AmyC]

You are correct the any health premiums paid with after tax dollars are a deductible medical expense. The 1099-R from OPM, box 5 is after-tax dollars (excluded from box 1). If you can determine the portion that belongs to medical expenses, they are deductible. The same is true with FEHB, any post tax dollars count for medical expenses. See Healthcare & Insurance.