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bergie
New Member

tax amount

I received a pension from Oregon state service in 2020.  $7035 in state taxes were withheld from gross payments, and $11,185 was withheld in federal taxes. I have a 457 qualified plan that withheld $25,126 in federal taxes and $3801 in state taxes.  Turbotax says the federal government owes me over $45,000 and the state of Oregon return shows overwithholding totaling almost $2000.  Do these numbers sound accurate to you? 

2 Replies
VolvoGirl
Level 15

tax amount

Federal seems very high.  Do you have other income?  Make sure you have the right taxable amount on 1040 line 5b.  I would delete the 1099Rs and re enter them.

SteamTrain
Level 15

tax amount

Yeah, Oregon refund is certainly possible, but Federal is probably way off.

 

1) IF the Oregon pension was paid to you monthly, and you receive regular pre-determined distributions after retirement, then most of box 1 on that 1099-R should be taxable.  IF box 2a is empty on that 1099-R, then the taxable amount must be calculated.....but it will not be zero, and most of box 1 should be taxable after the calculations occur .

 

2)  Similar for the 457 plan....but the amount of taxes  withheld seems to indicate you withdrew all of it.   SO what ends up getting Federally  taxed depends on whether you rolled all of it into a traditional IRA (or another 457 plan), or put it all in a regular taxable account of some kind.   IF none was rolled into another tax-deferred retirement account , and if box 2a is empty, or "undetermined", then other calculations need to be done to determine how much is Federally taxable, but it will usually be close to the box 1 value and not be zero.

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3)   The total of all of the box 1 values on both 1099-R forms should show up on line 5a of your Federal forms 1040.   Line 5b should be close to the value of 5a if none of the 457 was rolled into another retirement account...or lower only by any amount form the 457 that was rolled over into a traditional IRA (or other 457 plan).   IF none was rolled, the value of line 5b would be somewhat lower only if you made after-tax contributions to either the Oregon pension, or the 457 plan.

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Complications  (that I am far from knowledgeable about )

 

4)  UNLESS....apparently if it was a 457(f) plan (and not a 457(b) )  plan, then apparently a rollover to an IRA is not allowed and virtually all of it is subject to taxation.   But read:

 

https://www.investopedia.com/articles/personal-finance/020116/how-457-plan-works-after-retirement.as...

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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