OPM 1099R

[DJ2025]

CSRS retiree, OPM 1099R has box 1, gross distributions, box 2a, taxable amount and box 5, employee contributions/ROTH/Insurance premiums.  Box 7 has a 7, box 9b has my total contribution (which I use to fill out a simplified method worksheet (SMwksht).  On my 1099R, box 1 minus box 5 never equals box 2a, not even close.  When I have completed the SMwksht it lowers the box 2a amount by a miniscule amount (about a third of the reduction the SMwksht calculates.  So box 1 minus box 5 is $5700 less than box 2a and the SMwksht amount of approx. $6800 only lowers box 2a by $1600.  Why put $5700 more than can be accounted for, in box 5?  It feels like I'm leaving too much on the table.  Can someone please make sense of this. Thank  DJ

[DaveF1006]

It depends. First of all, your $5700 contributions won't be fully deducted during the first year.  Instead these will  be prorated over a period of time in accordance to the Simplified Method Worksheet to determine how much of each annuity payment is taxable.  Once your $5700 is exhausted, your distributions will be fully taxable.

The $5700 is the plan cost because this is how much you paid for the annuity. The factors are involved that determine how much of this can be deducted are as follows.

• plan cost
• annuity starting date
• death benefit exclusion if one exists
• your age at the annuity start date
• number of months paid during the year
• amounts previously recovered. If this is your in receiving your annuity, this will be blank in the worksheet.

Your return will have the worksheet available to you once you have the ability to look at your forms.  if you use Turbo Tax online, this wouldn't be available unless you pay for the product before filing the return.  if you use the desktop product, the forms are available to you.