Union pension monthly disbursements

[Jazzy_Tax]

I started receiving monthly payments from my union pension fund in 2023. I paid my union dues post-tax while I was employed. What, if any, portion of my payments are taxable? 

[DianeW777 · Accepted solution]

It depends.  Union dues are not an expense that can be excluded from your union pension payments.  Those dues pay for all sorts of benefits to help union employees.

The question is whether you contributed to your pension with after tax dollars.  If you did then you must get the cost of your plan from the plan administrator.  If you have a cost in your plan, your Form 1099-R should show a gross amount and then a different taxable amount . 

If all of the pension was paid by the employer and/or your pretax funds, then all of the pension distributions are taxable.

Please update here if you have more questions and we will help.