FAQ: IRS Form 1099-R
Last Updated: January 2016
Click here for a printable PDF version of this FAQ.
What is a Form 1099-R?
A Form 1099-R is an Internal Revenue Service (IRS) form which reports a taxpayer's distributions from pensions, annuities, IRAs, insurance contracts, profit-sharing plans and/or retirement plans (including section 457 state and local government plans). The form must be sent to taxpayers by January 31 of the year following the calendar year in which the distributions occurred.
Form 1099-R reports the gross distribution, any taxable amount applicable to that gross distribution, and any portion of federal income tax that was withheld. It also shows capital gains associated with the distribution.
The retirement system is required by federal law to provide a Form 1099-R to anyone who received a payment from NHRS in the previous year (except for Accidental Disability payments, see below). This information is also provided to the Internal Revenue Service (IRS).
Click here to view an informational graphic that explains how to read your Form 1099-R.
When will I receive my Form 1099-R?
NHRS sends retirees and beneficiaries Form 1099-R via U.S. Mail in late January.
Is Form 1099-R available online?
Electronic copies of Form 1099-R are available to view and print on My Account, the retirement system’s secure online portal. My Account provides retirees with access to personal data such as account balances, beneficiary designations, year-to-date retirement benefit summaries, deductions, direct deposit status, and federal withholding information.
Retirees and beneficiaries who would like to access their Form 1099-R electronically can learn more about My Account and sign up at: www.nhrs.org/my-account.
Important note: If you receive a pension benefit and a beneficiary benefit OR if you receive multiple pension benefits you will need to print multiple Form 1099-Rs from My Account to obtain all of your required tax information. Click here for instructions.
What should I do with the form?
You should use your Form 1099-R when completing your tax returns. If an accountant or other professional prepares your returns, you should provide this form or a copy of this form to your tax preparer.
Why did I get more than one Form 1099-R?
NHRS must report different types of retirement payments on separate forms. For instance, a retiree receiving an NHRS pension who is also in receipt of a survivor benefit will receive two 1099-Rs, one for their pension benefit and one for their survivor benefit.
Why didn’t I get a Form 1099-R?
NHRS mails the Form 1099-R to the current address on file. If you do not receive your Form 1099-R please contact a Finance Department representative at (603) 410-3659 or toll-free (877) 600-0158, ext. 3659, to verify the address to which it was sent.
If a change in address is needed, you will need to submit a Personal Information Change Form or update your personal information on My Account.
Note: NHRS does not issue a Form 1099-R to annuitants receiving an Accidental (job-related) Disability pension, as this benefit is tax-exempt.
How do I get additional copy(ies) of my Form 1099-R?
The fastest way is to print a copy from My Account. (Note: Remember, you may have multiple 1099-Rs that you need to print, see above.)
In addition, NHRS will mail you a copy (or copies) of your Form 1099-R to the address on file upon your request.
NHRS cannot fax copies of the Form 1099-R to individuals or tax preparers.
Why is the amount in Box 1 (Gross Distribution) different than the amount in Box 2a (Taxable Amount)?
Some of the contributions you made as an active member already had federal income tax withheld. To make up for this "previously taxed” money, a small portion of each pension check paid is exempt from taxes.
What is the information listed in Box 5 of my Form 1099-R?
Box 5 is labeled “Employee contributions /Designated Roth contributions or insurance premiums,” however, for NHRS purposes it is used to report those member contributions that you were previously taxed on, which are excluded from taxes for the year reported on the Form 1099-R. This amount is the difference between Box 1 and Box 2A as mentioned in the previous question.
Where can I find insurance premium information on the Form 1099-R?
Insurance premium information is not reported on IRS Form 1099-R.
The retirement system receives a number of tax-related inquiries from retirees looking for the amount of insurance premiums withheld from their pension benefits. NHRS advises retirees to contact their former employer or third party administrator (TPA) (i.e., HealthTrust, SchoolCare, etc.) to confirm the annual amount paid for health insurance.
Note: The amount shown on NHRS earnings statements, which are available online through My Account, may not be accurate if there were any premium adjustments made directly between the retiree and the former employer or TPA during the year.
I am using tax preparation software to complete my return. The program is asking me if NHRS is a “qualified plan.” What is the answer?
Yes. NHRS is a qualified plan.
I am using tax preparation software to complete my return. The program is asking me if the payment to me was a required minimum distribution (RMD). What is the answer?
Is NHRS involved in issuing IRS Form 1095 for retirees?
No. Form 1095 deals with your health insurance coverage in the prior year; NHRS does not provide health insurance. For more information, see: https://www.irs.gov/Affordable-Care-Act/Questions-and-Answers-about-Health-Care-Information-Forms-for-Individuals
Can NHRS provide tax assistance?
The retirement system cannot provide tax assistance.
The Internal Revenue Service (IRS) provides instructions for completing tax returns, and also offers information online at www.irs.gov. You also may wish to contact a qualified tax advisor regarding questions related to completing your tax return.
Another resource available to retirees is the AARP Foundation Tax-Aide program, which is available free to taxpayers with low and moderate income, with special attention to those 60 and older. Offered in cooperation with the IRS, AARP offers the Tax-Aide counseling program at thousands of sites nationwide during the filing season.
For more information or to locate the nearest AARP Tax-Aide site, visit http://www.aarp.org/money/taxes/aarp_taxaide/ or call 1-888-227-7669.
Who should I contact if I have additional questions about my Form 1099-R from NHRS?
Contact the NHRS Finance Department at (603) 410-3659, toll-free (877) 600-0158, ext. 3659, or firstname.lastname@example.org.