I’m entering 1099-R’s and have a situation on a small
pension distribution that started, paused, partially paid back and then
reinstated over a several year period...
My wife was laid off from a job roughly 6 years ago. When
she was released, she became eligible to receive a small monthly pension. She enjoyed
the distribution for about 4 years. After about the third (of the 4) year
after she was laid off she was rehired by the same company and continued to
receive her payouts. A year later, (after year 4) she was informed that she
couldn’t work for them and still receive her pension payments. She had to pause
her pension and repay the money she received since her rehire.
She worked for the company another 2 tax years and last August
retired and resumed her pension. I’ve entered her 2018 1099-R,
but now I’m being asked if this “is the first year she began getting regular
payments from the pension mgt company?” – Technically it’s not, but since it’s
been a couple of years since she’s received a payment, I’m concerned we will be
flagged for not having reported any pension payments over the last 2 years. – If
I answer this IS the first year she’s received distributions, then I concerned
about the three years she did receive and report her payments.
Any thought on how to rationalize my answer either way? I don’t
know where they are going with the question to know how to answer it.
