Benefit Payment and Tax Information
In January of each year, the Maine Public Employees Retirement System mails an Internal Revenue Service Form 1099-R to each person who received either a benefit payment or a refund of contributions in the prior calendar year. Download a sample explanation Form 1099-R and the information reported on it. Note: This is a SAMPLE only—please do not use this form for completion.
FAQs for 1099-Rs – 2021
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.
Your non-taxable amount may have expired.
3. What does Box 16 mean?
This is the amount subject to tax by the State you reside in. 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 16 from the amount in Box 1 will tell you the total amount excluded from state taxes for the year. Subtracting Box 16 from Box 2a will give you the ‘Pick-up Contributions’ needed to complete Schedule 1 on your Maine tax return.
5. My tax program is asking for the information in Box 15 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.
6. Can MainePERS help me with my taxes?
MainePERS cannot assist with preparing your tax return. We advise you to consult a tax preparer/accountant.
7. Why did I receive more than one 1099-R 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.
8. 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.
9. 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 Box 2a, it means you rolled the money into a Roth IRA and you will have to claim the money as taxable income.
10. I did not receive a 1099-R. What should I do?
If you have not received a 1099-R by February 15th, please contact MainePERS.
11. Am I eligible for the Maine Pension Income Deduction?
If you file State of Maine taxes you might be eligible for a deduction of $10,000 as a single taxpayer or $20,000 as a married taxpayer. For more information, please see this document and then contact your tax advisor or Maine Revenue Services.
12. How do I know if I’m eligible for the Retired Public Safety Worker exclusion for my health insurance?
As a retired public safety worker you might be eligible to exclude up to $3,000 in paid health insurance premiums from your income. Please see this document for more information and consult your tax advisor to determine your eligibility.