Understanding Your Form 1099-R (MSRB)

Understanding Your Form 1099-R

FORM 1099-R UPDATE 

The 1099-R tax forms for 2016 were mailed on January 20, 2017!
If you did not receive yours by February 17th, 2017, please notify the Board.

Did you know that you can also view your 1099-R on your PayInfo account?
Go to mass.gov/payinfo to log in to your account. Please note, although this is a handy item to have available for reference, it is not considered an official Form 1099-R and cannot be used to file your taxes. Therefore, be sure to hold on to the original hard copy that will be mailed to you.

How will my 1099-R be impacted by MARIS?
For tax year 2016, tax reporting will remain the same as past years. Beginning in January 2018, if an individual receives either an additional dependent stipend payment, or an alternate payee payment as a result of a divorce agreement, under MARIS those individuals will receive their own 1099-R form.

Need help understanding your Form 1099-R?
Please refer to the descriptions and corresponding sections highlighted in blue below. If you have any further questions about your taxes, please seek advice from your professional tax advisor or the Internal Revenue Service. Employees of the State Retirement Board are not authorized to advise you on any tax issues.

Please refer to the descriptions below for the corresponding sections highlighted above.

  1. Payer's Federal Identifications Number: This is the Massachusetts State Retirement Board's federal Employer Identification Number (EIN).
  2. Box 1 - Gross Distribution: This shows the total distribution amount that you received from the Massachusetts State Retirement Board for the calendar year 2016.
  3. Box 2a - Taxable Amount: This shows the distribution amount that is taxable. Money that was deducted from your check for employee contributions to the pension plan are pre-tax and therefore taxable when paid. Some money may have been deducted after tax (for example, if you had bought back time). These amounts are recovered and will not be taxable. They will be deducted over an extended period from when you start receiving your pension and are equal to the difference between your gross and taxable distribution.
  4. Box 4 - Federal Income Tax Withheld: This is the total amount of federal income tax withheld from your benefit payment for the calendar year 2016.
  5. Box 7 - Distribution Code: This IRS code identifies the type of distribution you received from the Massachusetts State Retirement Board. The codes are also described on the back of your 1099-R Form. 
    • Code 1: Premature distribution subject to excise tax penalty (generally a lump sum distribution).
    • Code 2: Applies to certain distributions, including regular retirement benefits, that are eligible for the exception to the premature distribution tax. Code 2 is indicated for benefit recipients under the age of 59 1/2 for a reported year. 
    • Code 4: Identifies payments received for a survivor, beneficiary, or estate of a deceased member of a MSERS retiree. 
    • Code 7: Identifies payments for regular pension distributions for benefit recipients over the age of 59 1/2 for the reported calendar year. 
    • Code G: Identifies as a total distribution that was directly rolled over to a financial institution.  

Please note: MSRB Staff is not authorized to give you tax advice of any kind. If you have questions regarding your individual tax liability please contact a tax advisor or the IRS.

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