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Forum|Forum|2 years ago
July 26, 2023
2 replies
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I have 60k pension and 20k in 403b distributions. Do I add the 20k 403b under “others pension/annuity” or skip? My 403b has taxes taken out a

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Ask the Experts - Retirement - July 2023

Best answer by jfmp

Thanks - was asking about W4P form — I want to fill out correctly . Should my 403B distribution amount be added under “other pension or annuity “ or skipped?

thanks

mtufaro

Level 7

Thank you for your question jfmp

So both the pension and the 403 (b) distributions are reported on Form 1099-R. You enter a 1099-R as follows:

Scroll down to "Retirement Plans and Social Security" and click "Show more"
Scroll down and click "Start or Edit/Add" next to "IRA, 401(k), Pension Plan Withdrawals (1099-R)"

The taxes withheld are shown in Box 4 - Shows federal income tax withheld from the distribution, and Box 14 - State tax withheld from the distribution.

All the best,

Marc T.

jfmpAuthorAnswer

Level 2

Thanks - was asking about W4P form — I want to fill out correctly . Should my 403B distribution amount be added under “other pension or annuity “ or skipped?

thanks

mtufaro

Level 7

Thank you for clarifying your question @jfmp. To allow for you to get the most accurate tax withholding, I would suggest that you add in Step 2 (ii) of the W-4P, the $20,000 amount that you receive as a distribution annually from the 403 (b) plan.

I would suggest using the W-4 calculator here: https://turbotax.intuit.com/tax-tools/calculators/w4/ estimate what your taxes will be when you file 2023 taxes in 2024. You just would be entering the pension income from both pensions as well as the withholding from the 403 (b) to date. This would give you a rough idea of how much taxes should be withheld from the $60K pension distribution.

All the best,

Marc T.

rschule1

Level 6

Hi There

You must include the distribution and federal withholding on your tax return. Hopefully your plan provider has issued a 1099-R which identifies all your necessary information which will need to be entered in Retirement distribution section of your tax return. E.G (Gross distribution, Taxable distribution, Federal tax withheld, Etc.)

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