topic Is the annuity I receive monthly as a retired federal worker (USPS) counted as "Employer-sponsored pension plan or qualified IRA" ? May affect Arkansas state return... in Retirement tax questions

Is the annuity I receive monthly as a retired federal worker (USPS) counted as "Employer-sponsored pension plan or qualified IRA" ? May affect Arkansas state return...

landers3 — Tue, 04 Feb 2020 03:33:42 GMT

Re: Is the annuity I receive monthly as a retired federal worker (USPS) counted as "Employer-spon...

AmyC — Tue, 04 Feb 2020 03:52:39 GMT

Yes. The Postal Service participates in the federal retirement program, which provides a defined benefit (pension), as well as disability coverage. ... Career postal employees may contribute to the Thrift Savings Plan (TSP), which is similar to 401(k) retirement savings plans offered by private sector employers. from Compensation and Benefits - Careers - About.usps.com

Re: Is the annuity I receive monthly as a retired federal worker (USPS) counted as "Employer-spon...

landers3 — Tue, 04 Feb 2020 17:25:48 GMT

Thanks for the reply. Continuing to the next page or so, TT wants to know if I apply any of that monthly pension income to the RMD. I would answer "NO" because I don't believe an RMD is involved in this pension plan (I have never received any notification of an RMD) . But TT insists that "that would be unusual". Why would it be "unusual"? That kind of concerned me...

Re: Is the annuity I receive monthly as a retired federal worker (USPS) counted as "Employer-spon...

DaveF1006 — Tue, 04 Feb 2020 21:58:27 GMT

If you turned 70 1/2 during 2019, you are required to take a Required Minimum Distribution from you retirement plan. Exceptions occur however if you are still working and haven't retired, you do not need to take a Required Minimum Distribution. This is only required if you turned 70 1/2 during the year or older and if you are retired. Here is a helpful IRS link that explains this more in detail.

Re: Is the annuity I receive monthly as a retired federal worker (USPS) counted as "Employer-spon...

xjtm — Wed, 05 Feb 2020 18:47:11 GMT

The answer I read is not specific about the postal pension annuity as being qualified or not. Postal service has the Pension Annuity and the TSP. They are separate. Federal annuities may be handled differently. So Is the Pension Annuity by itself qualified or not?

User:xjtm

Re: Is the annuity I receive monthly as a retired federal worker (USPS) counted as "Employer-spon...

KarenJ2 — Wed, 05 Feb 2020 19:33:00 GMT

As you had income from your employment related pension plan, you are entitled to a $6,000 exemption from the balance that is taxable in Arkansas.

The pension income can come from either private or government employer sponsored retirement plans.

(a) (1) The first six thousand dollars ($6,000) of benefits received by any resident of this state from an individual retirement account or the first six thousand dollars ($6,000) of retirement benefits received by any resident of this state from public or private employment-related retirement systems, plans, or programs, regardless of the method of funding for these systems, plans, or programs, shall be exempt from the state income tax.

2014 Arkansas Code Title 26 - Taxation