OPM CSA 1099R Annuity Information

[LsMonop]

First I don't recall this section being so confusing in past years.

 CSA 1099R Box 1 gross distribution is different than Box 2a Taxable amount. 

Let's go through the sections:

*What did you do with the money from OPM:

  Did something else (cash out)  checked, because it's for retirement and I didn't return it.

*Periodic payments - yes

 *Payment start year - 2012

 *For the years I received these distributions, was the "taxable annuity" box the "taxable amount"?

    No box 1gross distribution and 2a taxable amount are different.

(WHY didn't they ask if box 1 is different from box 2a ????)

So, following the "simplified" method:

Annuity start date - 2012

Plan cost ??? is this box 9b?

Number of payments received in 2019 -12

Tax free amount previously recovered -??? I think none

Help!

[ColeenD3]

Plan cost: 

Box 9b. For a life annuity from a qualified plan or from a section 403(b) plan (with after-tax contributions), an amount may be shown for the employee’s total investment in the contract. It is used to compute the taxable part of the distribution. See Pub. 575

If you have using the simplified method since you began taking the pension, then you have recovered amounts each year. You would need to look back in your records.

The Simplified Method

Generally, if you begin receiving annuity payments from a qualified retirement plan, you use the Simplified Method to figure the tax-free part of the payments. A qualified retirement plan is a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity plan or contract (refer to Publication 575 for definitions). Under the Simplified Method, you figure the taxable and tax-free parts of your annuity payments by completing the Simplified Method Worksheet in the Form 1040 Instructions or in Publication 575. For more information on the Simplified Method, refer to Publication 575, or if you receive United States Civil Service retirement benefits, refer to Publication 721, Tax Guide to U.S. Civil Service Retirement Benefits.

[LsMonop]

Thanks Coleen,

Looks like it's been the simplified method and recovering some each year.  Ended up using the taxable amount (after filling in all the blanks) from box 2a anyway.  

Thanks again.

[susielane]

Turbotax will not correctly calculate the taxable amount (Box 2a on OPM Form 1099-R) unless you download your OPM on-line-services PDF file of your 2019 1099-R.   If you try to type it in, it will proceed to reduce (again) the taxable amount.

[hshivers2]

I have been receiving OPM CSA 1099R since 2012.  I have never been asked (byTurbo Tax or anyone) for the total recovered to date before.  Each year the form shows the total contributed and the taxable and non taxable amounts received in that year. Recipients do not use or choose a method at all, but take what OPM sends them and do not likely know or care about the method used.  Therefore, this entire line of input is irrelevant unless the IRS has changed something to require it.  Completing this section in Turbo Tax will require me to find all of my forms since 2012 and do the math.  Why?  We have no control over the method OPM used or ability to change what they do or did. 

[macuser_22]

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@hshivers2 wrote:

I have been receiving OPM CSA 1099R since 2012.  I have never been asked (byTurbo Tax or anyone) for the total recovered to date before.  Each year the form shows the total contributed and the taxable and non taxable amounts received in that year. Recipients do not use or choose a method at all, but take what OPM sends them and do not likely know or care about the method used.  Therefore, this entire line of input is irrelevant unless the IRS has changed something to require it.  Completing this section in Turbo Tax will require me to find all of my forms since 2012 and do the math.  Why?  We have no control over the method OPM used or ability to change what they do or did. 

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Nothing has changed.   Be sure you choose the CSA 1099-R type.  Say the taxable amount is used (that is the box 2a amount).

[hshivers2]

Thanks.  I just went back and realized I misread that option.

[FAA1]

I, too, found this section to be confusing and about frustrated with TurboTax. I have entered all the info from my CSA 1099R.  Box 1 is "Gross" and Box 2a is "Taxable" distribution.  Turbo Tax shows the gross amount in the Income section and, of course, one cannot view if this amount changes when entered on the 1040.  My "taxable" distribution is the only amount that should show.  Ask a question and they want to know if I took a RMD.  This has nothing to do with RMD.  This is a monthly pension.  Maybe that is what is so confusing....very few people have one these days. 

[hshivers2]

Maybe put in the non taxable amount in both places and then put in the taxable amount in both places and see what the results are compared to each other and to the original method. Obviously make the correction before filing.

[macuser_22]

By periodic payments from a pension ARE a RMD.    The Amount trustee is required to calculate the RMD amount and that is the payment you receive.

You can view the 1040 and see that the taxable amount is on line 4b.

https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-f...