Portion of Pension That is Taxable

[sammyjohnmi]

I am trying to understand how the portion of my pension is taxable. Turbotax calculates it as less than the distribution amount and I would like to understand how it is calculated. I've looked at publication 575, "Pension and Annuity Income" but the worksheet at the end of the publication seems to be just for annuities. It doesn't make sense to use it for pensions. I have a qualified pension plan and the full distribution amount isn't taxed. How is the taxable portion calculated. I didn't see any other info on this in this website's forum, etc. other thanall or  a portion of my pension may be taxed which I already know. Thanks

[LindaS5247]

Just to clarify why is your qualified pension distribution not taxable?

[Mike9241]

it seems you're asking why only part of the amount in 1a is taxable. we can't see what you entered. to help we would have to know what boxes/lines on the 1099-R have amounts or are checked and does box/line 1 and 2a agree.

[hbl3973]

Boxes 5 and/or 9 would have entries in order for a taxable amount to be less than the gross amount.  When after-tax dollars are contributed to a retirement account, they are dribbled out over time as reductions in the amount of the distribution that is taxable.  The annuity calculation is really also a pension calculation.  Try using the Bogart Pension/Annuity Tool yourself to see if it duplicates your taxable number.  There is a similar thing for IRA's that have a comparable after-tax basis.  IRS Form 8606 is then used to calculate the reduction.