PBGC 1099-R

Forum|Forum|5 years ago
January 29, 2021
1 reply
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I receive monthly pension payment from State Street Retiree Services for USPBGC from an airline bankruptcy. My form 1099-R has box 2a blank and 2b checked(taxable amount not determined). Box 4 shows the Federal Income tax withheld that PBGC deducts every month as my election. When I go through the TurboTax steps it treats it as an Annuity and wants me to use the simplified method. I am lost at this point so I just input the date that my PBGC payments started and every 12 months and leave the rest blank. How should I correctly go through this step. Thanks Mark

Best answer by JohnB5677

You are doing okay. If Box 2a is blank on your 1099-R form, the taxable portion of your distribution needs to be calculated: Is my distribution nontaxable if Box 2a on my 1099... (intuit.com).

Because you are getting regular monthly payments it is considered a Pension. The annuity question suggests that you put money into the plan. I don't think you did. Therefore, there would not be any "basis" that would be calculated as non taxable.

Finally, the tax withholding that you have in Box 4 will be credited to you on your tax return.

JohnB5677Answer

Level 15

You are doing okay. If Box 2a is blank on your 1099-R form, the taxable portion of your distribution needs to be calculated: Is my distribution nontaxable if Box 2a on my 1099... (intuit.com).

Finally, the tax withholding that you have in Box 4 will be credited to you on your tax return.

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