1099-R

Forum|Forum|6 years ago
April 19, 2020
3 replies
28 views

My husband received a 1099R from the MTRS (MA Teachers Retirement System). Before retiring he paid into his pension out of savings and bought 3 years to boost his monthly income. They reduce his taxable amount by a percentage (in box 5) each year to account for a portion of the paid in amount. My question is monthly they take out for Medicare Part D and they tax that amount as part of his taxable distribution amount. They do put an amount in a blank box that says Insurance: $3511.55, but they don't subtract it from the taxable amount. I have never paid taxes on my medical premiums from work, they are alway taken as pretax amounts. Do all retirees pay taxes on their Medicare premium payments?

Carl

Level 11

Take a look at the 1099-R please and let us know if the amount reported in box 1 exactly matches the amount reported in box 2a. Or is 2a blank and one of the check boxes in 2b is selected instead?

Also, what is the code in box 7?

HaloodorAuthor

Level 2

Hi,

Box 1 contains the gross amount. Box 2 contains the taxable amount. Which is $ 1300 less than box 1, this amount represents a portion of the paid in contribution that my husband paid from our savings to boost his retirement amount. The contribution amount was about $29,000. So the retirement board divided this by 20 = No of years they believe he might be collecting. There is no box checked in 2b. Box 5 is the $1300.00. Box 9b shows the ending balance of the paid in amount. In an empty box, right under box 10 & 11, says insurance $3511.55. This includes the money they take out for his Medicare part D and my Medical BC/BS. I believe that amount should be in box 5 with the paid-in amount. Are the medical premiums taxable. I don’t believe they should be. Working people have this removed before payroll tax. Please advise. Many thanks.