FAQ’S FOR 1099-R’s - 2011

            1. What does the amount in Box 5 represent?

These are contributions to Maine Public Employees Retirement System on which you already paid taxes.  This is the difference between Box 1 and Box 2a.  These are not insurance premiums.

2.  Why is there a difference in Box 5 this year?   For the last 10 years, the numbers have always been the same.  My wife also received a 1099-R and her numbers in Box 5 did not change.

Box 5 might be slightly different from the prior year(s) because of how our system determines the amount of already taxed contributions you have received in the year.  Regardless of the change in the amount, you will not be taxed on contributions for which you already paid taxes.  The change in the basis for determining the amount did not affect all retirees.

3.  What does Box 14 mean?

This is the amount subject to tax by the State.  Recipients are responsible for state taxes in the state in which they reside.  For a retiree, this amount is calculated by subtracting the amount not subject to taxes for that year from the amount in Box 1 (Gross Distribution).

4.  How do I determine the “excludable amount?

Subtracting the amount in Box 14 from the amount in Box 1 will tell you the amount excluded from taxes for the year.  This figure is important in filling out your State tax return.

5.  Why did the number in Box 7 change from a “7” to a “2?”

This year MainePERS determined the distribution code based on the age at which you first received your pension, regardless of your current age.  Therefore, if you were below 59 ½ at your pension effective date, we reported you this year as a “2”.  Both “7” and “2” are the same for purposes of the taxability of your benefit.  The information reported to the IRS will reflect the code based on your age at the time the 1099R was issued.

6.  My tax program is asking for the information in Box 13 and I’m entering the number 23, but it will not take it, what do I do?

     Try entering ME for the state.  Some programs use that instead of the state number of 23.

    7. Can MainePERS help me with my taxes?

MainePERS cannot assist with preparing your tax return.  We advise you to consult a tax preparer/accountant.

8. Why did I receive more than one 1099 R’s this tax season?

There are several reasons why a person may receive more than one 1099-R.  You may be a retiree who is receiving more than one pension benefit, or you received a refund of MainePERS contributions, or a refund of contributions from another pension fund.

9. I received a 1099-R for a deceased relative.  Why did I get it, and what do I do with it?

If you received a 1099-R, it may be because you are the person who notified us of the death of your relative, or is managing your relative’s estate.  You will need the 1099-R to complete your relative’s last Federal and State Tax returns.  If you are not that person, please send the form to the person who is preparing the tax returns.

10. I rolled over funds last year and received the 1099-R but I’m not sure how to tell if I am going to be taxed on it? 

If there is a “G” in Box 7 and Box 2a is showing a zero (0), you will not be taxed for this year. The money is subject to tax when you take a distribution.

If there is a “G” in Box 7 and an amount in Box2a, it means you rolled the money into a Roth IRA and you will have to claim the money as taxable income.