topic <a rel="nofollow" target="_blank" href="https://www.dol.g... in Retirement tax questions

Is military annuitant pay reported on 1099-R form a qualified or non-qualified plan?

bill_s2 — Fri, 07 Jun 2019 22:08:39 GMT

Is military annuitant pay reported on 1099-R form a qualified or non-qualified plan? The question is not about military retirement pay to a veteran. It is about the annuitant pay to the surviving spouse of a veteran. Various answers to the question answer with respect to military retirement pay, not annuitant pay. DFAS also gives the same answer, referencing military retirement pay.

I suppose it's likely that the annuitant pay is also from a non-qualified plan since the funding source is the same as the retirement pay, but nobody seems to be able to answer the specific question: "Is military annuitant pay reported on 1099-R form a qualified or non-qualified plan?"

It came from a Military retirement account.....so it is n...

SteamTrain — Fri, 07 Jun 2019 22:08:41 GMT

It came from a Military retirement account.....so it is non-qualified no matter who gets the $$ and the 1099-R.

That doesn't sound right. The active duty member contrib...

mishureza — Fri, 07 Jun 2019 22:08:44 GMT

That doesn't sound right. The active duty member contributes to the annuity plan. When he or she dies, the spouse gets a benefit. If the member doesn't sign up for the annuity, they get a bigger check. So the fact is that in order to qualify for the plan someone is donating to the fund. Bottom line-TURBOTAX needs to get correct with this and come up with a straight damn answer. The military told ACDU that the pension was "deferred compensation" which would suggest that it was owed for services rendered (i.e. contributions to the plan). Also, if you contribute a portion of your retirement in order to get an annuity for a spouse, you're, again, CONTRIBUTING to the plan. This is what we pay all this money for? Lousy/No advice?

Qualified/non qualified has nothing to do with defined be...

macuser_22 — Fri, 07 Jun 2019 22:08:45 GMT

Qualified/non qualified has nothing to do with defined benefit or deferred compensation.

In simplest terms, a qualified retirement plan is one that meets ERISA guidelines, while a non-qualified plan falls outside of ERISA guidelines. The Employee Retirement Income Security Act of 1974 (ERISA).

Most Military plans are not part of ERISA.

If in doubt ask the plan administrator - they can tell you if the plan is qualified or not.

https://finance.zacks.com/military-retirement-nonqualified-deferred-compensation-plan-11016.html">https://finance.zacks.com/military-retirement-nonqualified-deferred-compensation-plan-11016.html</a>

https://www.dol.gov/general/topic/retirement/erisa">https://www.dol.gov/general/topic/retirement/erisa</a>
In general, ERISA does not cover plans established or maintained by governmental entities, churches for their employees.

There are exceptions, the plan administrator can tell you for sure.

Here us a good reference. https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=38&cad=rja&uact=8&ved=2ahUKEwjQ7sTPxMbhAhVRMawKHUswCCg4HhAWMAd6BAgHEAI&url=https%3A%2F%2Fwww.aon.com%2Fgetmedia%2F2a1382f9-884a-499c-9663-4f19412a4123%2FSchwallie_Governmental_Plans_Are_Different_Benefits_Quarterly_Q3_2018.aspx&usg=AOvVaw3mBrZ63qzvP2OmJFnwy3Zu">https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=38&cad=rja&uact=8&ved=2ahUKEwjQ7sTPxMbhAhVRMawKHUswCCg4HhAWMAd6BAgHEAI&url=https%3A%2F%2Fwww.aon.com%2Fgetmedia%2F2a1382f9-884a-499c-9663-4f19412a4123%2FSchwallie_Governmental_Plans_Are_Different_Benefits_Quarterly_Q3_2018.aspx&usg=AOvVaw3mBrZ63qzvP2OmJFnwy3Zu</a>