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nafig76
New Member

Is my 1099r a qualified or nonqualified plan

I am newly retired from federal employment...is my annuity payment qulified or unqualified...help
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3 Replies
MargaretL
Expert Alumni

Is my 1099r a qualified or nonqualified plan

Your plan is a qualified plan. 

Per IRS:  "The CSFS, FERS and TSP are considered qualified retirement plans." - pub 721, page 15

Also, Qualified plans include: 

  • 401(k)s
  • 403(b)s (also known as tax-sheltered annuity plans)
  • 457 plans for government employees
  • Traditional IRAs
  • Roth IRAs
  • SEP and SIMPLE plans for employees of small businesses
  • Pension plans
  • Profit-sharing plans
  • Stock bonus plans

Non-qualified plans include:

  • Life insurance policies (if distribution is full payment)
  • Private or purchased commercial annuities
  • Military retirement plans

Is my 1099r a qualified or nonqualified plan

Also Qualified... A corporate Annuity purchased with funds from a 401K plan

dmertz
Level 15

Is my 1099r a qualified or nonqualified plan

An annuity purchase with funds from a 401(k) plan is a qualified annuity only if it is purchased within the 401(k) or is purchased as an IRA annuity with a rollover from the 401(k).  If an annuity is purchased with funds from a 401(k) that were, say, an RMD from the 401(k) and therefore not eligible for rollover, the annuity would be a nonqualified annuity.

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