I get a FERS disability retirement annuity for firefighters and my regular MRA would have been 50. Can I begin to recover the amount on form CSA 1099 R line 9b at age 50?

[1233211]

Also, on the CSA 1099 R line 2a it says "Unknown".

 From what I can gather from IRS info- you can recover your amount on line 9b (total employee contributions) using the "Simplified Method" when you reach the age at which you would have normally been able to retire under your retirement program.  For me that would have been 50.  

Additionally, the annuity is currently taxed as normal income.  Does this also change when I turn 50?

[ColeenD3]

Yes. 

An employee is not required to separate from a position as an ATC, FF, or a LEO in order to retire under the special provisions. Once an employee meets the minimum service requirements (20 or 25 years and associated minimum age requirement) he or she may exercise the right to retire under the special provision even if the employee is no longer covered by these provisions at the time of retirement.

Please see this LINK for more information.

[1233211]

Thanks for the answer but I think  you misunderstood my situation.  My fault, I should have given more detail:  I retired medically with FERS disability as a FF, with about 15 of years 6c (special provision) coverage, but I was under 50 with less than 20 years service at the time.

[ColeenD3]

In that case, then no. The IRS specifies that you meet both conditions.

[1233211]

OK got it. So, in that case:

1. At what age can I begin to recapture line 9b?

2. At what age will the disability annuity tax status change from regular income to a retirement pension?

[DaveF1006]

According to this Department of Interior source, the mandatory retirement age, with 20 years covered service is: Firefighters and Law Enforcement Officers - age 57, or anytime after age 57, upon reaching 20 years covered service. At this point, your disability annuity will change to Retirement Income.

I cannot comment on question number 1 because I am not sure which form you are referencing.

[1233211]

That’s the problem though. I only had about 15 years of service, not 20. So that definition would not apply.

So the questions remain:

1. At what age can I begin to recapture line 9b on form CSA 1099R.

2. At what age will the disability annuity tax status change from regular income to a retirement pension?

[MaryK4]

In most cases, the minimum age for retirement under the FERS is between ages 55 and 57 with at least 10 years of service.  See below.  

[1233211]

According to the chart I would be eligible for retirement at 57. 

So does that mean I can:

  
1. Begin to recapture line 9b on form CSA 1099R at 57 Using the simplified method?

2. Also, will the disability annuity tax status change from regular income to a retirement pension at 57?

[MarilynG1]

Yes, if your 1099-R has no amount in Box 2a, this will trigger the Simplified Method questions in TurboTax, where you indicate your basis in your pension.

Also, the Code in Box 7 of your 1099-R should change from 4 to 7 to be considered retirement income, rather than wages.

They are both taxed at the same rate.

Click this link for more info on Reporting a Disability Annuity.