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Solved

How is plan cost at annuity starting date determined?

Forum|Forum|7 years ago
June 4, 2019
2 replies
41 views

My husband received a estimate of his monthly pension based on 35% survivor option. The average final compensation was $54,902.93. Is that the amount I use as plan cost at annuity starting date?

TurboTax Deluxe Windows

Best answer by AnnetteB6

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.

AnnetteB6Answer

Level 15

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.

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ortiztaylorpeligroso

Level 2

This is totally unclear when using the TurboTax software (2021 and 2022). I suggest Intuit work to clarify this within the software.