Hurricane tax relief. Special rules apply to the use of retirement funds by qualified individuals who suffered an economic loss as a result of Hurricane
Katrina, Rita,
or Wilma. See Hurricane-Related Relief, for information on these special rules.
This publication discusses the tax treatment of distributions you receive from pension and annuity plans and also shows you
how to report the
income on your federal income tax return. How these distributions are taxed depends on whether they are periodic payments
(amounts received
as an annuity) that are paid at regular intervals over several years or nonperiodic payments (amounts not received as an
annuity).
What is covered in this publication?
Publication 575 contains information that you need to understand the following topics.
-
How to figure the tax-free part of periodic payments under a pension or annuity plan, including using a simple worksheet for
payments under
a qualified plan.
-
How to figure the tax-free part of nonperiodic payments from qualified and nonqualified plans, and how to use the optional
methods to figure
the tax on lump-sum distributions from pension, stock bonus, and profit-sharing plans.
-
How to roll over certain distributions from a retirement plan into another retirement plan or IRA.
-
How to report disability payments, and how beneficiaries and survivors of employees and retirees must report benefits paid
to
them.
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How to report railroad retirement benefits.
-
How to report Railroad Retirement benefits received.
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When additional taxes on certain distributions may apply (including the tax on early distributions and the tax on excess
accumulation).
For additional information on how to report pension or annuity payments on your federal income tax return, be sure to review
the instructions on
the back of Copies B and C of the Form 1099-R that you received and the instructions for Form 1040, lines 16a and 16b (Form
1040A, lines 12a and 12b).
A “corrected” Form 1099-R replaces the corresponding original Form 1099-R. Make sure you use the amounts
shown on the corrected 1099-R when reporting information on your tax return.
What is not covered in this publication?
The following topics are not discussed in this publication.
The General Rule.
This is the method generally used to determine the tax treatment of pension and annuity income from nonqualified plans
(including commercial
annuities). For a qualified plan, you generally cannot use the General Rule unless your annuity starting date is before November
19, 1996. Although
this publication will help you determine whether you can use the General Rule, it will not help you use it to determine the
tax treatment of your
pension or annuity income. For more information on the General Rule, see Publication 939, General Rule for Pensions and Annuities.
Individual retirement arrangements (IRAs).
Information on the tax treatment of amounts you receive from an IRA is in Publication 590, Individual Retirement Arrangements
(IRAs).
Civil service retirement benefits.
If you are retired from the federal government (either regular or disability retirement) or are the survivor or beneficiary
of a federal employee
or retiree who died, get Publication 721, Tax Guide to U.S. Civil Service Retirement Benefits. Publication 721 covers the
tax treatment of
federal retirement benefits, primarily those paid under the Civil Service Retirement System (CSRS) or the Federal Employees'
Retirement System (FERS).
It also covers benefits paid from the Thrift Savings Plan (TSP).
Social security and equivalent tier 1 railroad retirement benefits.
For information about the tax treatment of these benefits, see Publication 915, Social Security and Equivalent Railroad
Retirement Benefits.
However, this publication (575) covers the tax treatment of nonequivalent tier 1 railroad retirement benefits, tier 2 benefits,
vested dual
benefits, and supplemental annuity benefits paid by the U.S. Railroad Retirement Board.
Tax-sheltered annuity plans (403(b) plans).
If you work for a public school or certain tax-exempt organizations, you may be eligible to participate in a 403(b)
retirement plan offered by your
employer. Although this publication covers the treatment of benefits under 403(b) plans, it does not cover other tax provisions
that apply to these
plans. For more information on 403(b) plans, see Publication 571, Tax-Sheltered Annuity Plans (403(b) Plans).
Comments and suggestions.
We welcome your comments about this publication and your suggestions for future editions.
You can write to us at the following address:
Internal Revenue Service
Individual Forms and Publications Branch
SE:W:CAR:MP:T:I
1111 Constitution Ave. NW, IR-6406
Washington, DC 20224
We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number,
including the area code, in
your correspondence.
You can email us at
*[email protected]. (The asterisk must be included in the
address.) Please put “
Publications Comment” on the subject line. Although we cannot respond individually to each email, we do appreciate your
feedback and will consider your comments as we revise our tax products.
Tax questions.
If you have a tax question, visit
www.irs.gov or call 1-800-829-1040. We cannot answer tax questions at either
of the addresses listed above.
Ordering forms and publications.
Visit
www.irs.gov/formspubs to download forms and publications, call 1-800-829-3676, or write to the National Distribution Center at the
address shown under
How To Get Tax Help in the back of this publication.
