1. EKS Advanced Training Pilot1 IRA and PENSION INCOME Pub 4491Lesson 11 Pub 4012Tab 2 Form 1040Lines 15-16 Pub 17Chapters 10, 17

2. EKS Advanced Training Pilot2 IRA DISTRIBUTIONS Pub 17 Ch 17 Reported on Form 1099-R SIMPLE IRAs and SEPs p122 : out-of-scope Traditional IRAs p123 –See Intro and Who –Must take required minimum distribution - see Excess Accumulations p130 Roth IRAs p131

3. EKS Advanced Training Pilot3 PENSIONS & ANNUITIES Tab 2 –Box 7 codes (i.e. 7, 3, 4, 1, G) –Early Distributions (Code 1) –Disability Pensions (Code 3) – line 7 1040? –Exclusion Worksheet (i.e. rollover, PSO health insur, simplified method) –“Simplified Method” – Box 9b (ee contrib) –1099-RMost common –RRB-1099R (green)Railroad Benefits –CSA-1099RCivil Service

4. EKS Advanced Training Pilot4 Disability Retirements Disability payments are taxed as wages until the taxpayer reaches the minimum retirement age (age is set by the employer) - report on line 7 Form 1040 After the taxpayer reaches the minimum retirement age, disability payments are treated as pension income to determine taxability – report on line 16 Form 1040

5. EKS Advanced Training Pilot5 Taxable Distributions Payer will compute the taxable portion of the distribution and report it (box 2a Form 1099- R) Retirement plans are funded by either before-tax or after-tax contributions –Before-tax - entire distribution will be fully taxable –After-tax – distributions partially taxable (box 9b Form 1099-R) Two methods used to figure taxable portion the General Rule and the Simplified Method

6. EKS Advanced Training Pilot6 Simplified Method Volunteer Resource Guide (Tab 2), 1099-R Exclusion Worksheet - calculating the taxable portion using the Simplified Method To calculate you will need: C ost in the plan (box 9b Form 1099-R) Age - taxpayer’s age on the date the annuity began (and spouse’s age if joint/survivor annuity is selected); note if the annuity starting date is before or after the taxpayer’s birthday for that year Total of tax-free amounts from previous years - available from the taxpayer’s prior year worksheet

7. EKS Advanced Training Pilot7 Exclusion Worksheet (page 2-18 Pub 4012)

8. EKS Advanced Training Pilot8 RRB-1099R (Green)

9. EKS Advanced Training Pilot9 Pension Income Questions?