Publication 575 - Pension And Annuity Income - 2004 Page 3
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36571
Tax-Sheltered Annuity Plans (403(b) Plans)
schools and certain tax-exempt organizations. Generally,
a tax-sheltered annuity plan provides retirement benefits
590
Individual Retirement Arrangements (IRAs)
by purchasing annuity contracts for its participants.
721
Tax Guide to U.S. Civil Service Retirement
Types of pensions and annuities. Pensions and annui-
Benefits
ties include the following types.
915
Social Security and Equivalent Railroad
Fixed-period annuities. You receive definite amounts
Retirement Benefits
at regular intervals for a specified length of time.
939
General Rule for Pensions and Annuities
Annuities for a single life. You receive definite
amounts at regular intervals for life. The payments end at
Form (and Instructions)
death.
W-4P Withholding Certificate for Pension or Annuity
Joint and survivor annuities. The first annuitant re-
Payments
ceives a definite amount at regular intervals for life. After
1099-R Distributions From Pensions, Annuities,
he or she dies, a second annuitant receives a definite
Retirement or Profit-Sharing Plans, IRAs,
amount at regular intervals for life. The amount paid to the
Insurance Contracts, etc.
second annuitant may or may not differ from the amount
paid to the first annuitant.
4972 Tax on Lump-Sum Distributions
Variable annuities. You receive payments that may
5329 Additional Taxes on Qualified Plans (Including
vary in amount for a specified length of time or for life. The
IRAs) and Other Tax-Favored Accounts
amounts you receive may depend upon such variables as
See How To Get Tax Help near the end of this publica-
profits earned by the pension or annuity funds, cost-of-liv-
tion for information about getting publications and forms.
ing indexes, or earnings from a mutual fund.
Disability pensions. You receive disability payments
because you retired on disability and have not reached
General Information
minimum retirement age.
More than one program. You may receive employee
Definitions. Some of the terms used in this publication
plan benefits from more than one program under a single
are defined in the following paragraphs.
trust or plan of your employer. If you participate in more
than one program, you may have to treat each as a sepa-
Pension. A pension is generally a series of definitely
rate contract, depending upon the facts in each case. Also,
determinable payments made to you after you retire from
you may be considered to have received more than one
work. Pension payments are made regularly and are
pension or annuity. Your former employer or the plan
based on such factors as years of service and prior com-
administrator should be able to tell you if you have more
pensation.
than one pension or annuity contract.
Annuity. An annuity is a series of payments under a
contract made at regular intervals over a period of more
Example. Your employer set up a noncontributory
than one full year. They can be either fixed (under which
profit-sharing plan for its employees. The plan provides
you receive a definite amount) or variable (not fixed). You
that the amount held in the account of each participant will
can buy the contract alone or with the help of your em-
be paid when that participant retires. Your employer also
ployer.
set up a contributory defined benefit pension plan for its
employees providing for the payment of a lifetime pension
Qualified employee plan. A qualified employee plan is
to each participant after retirement.
an employer’s stock bonus, pension, or profit-sharing plan
The amount of any distribution from the profit-sharing
that is for the exclusive benefit of employees or their
plan depends on the contributions (including allocated
beneficiaries and that meets Internal Revenue Code re-
forfeitures) made for the participant and the earnings from
quirements. It qualifies for special tax benefits, such as tax
those contributions. Under the pension plan, however, a
deferral for employer contributions and capital gain treat-
formula determines the amount of the pension benefits.
ment or the 10-year tax option for lump-sum distributions (if
The amount of contributions is the amount necessary to
participants qualify). To determine whether your plan is a
provide that pension.
qualified plan, check with your employer or the plan admin-
Each plan is a separate program and a separate con-
istrator.
tract. If you get benefits from these plans, you must ac-
count for each separately, even though the benefits from
Qualified employee annuity. A qualified employee an-
both may be included in the same check.
nuity is a retirement annuity purchased by an employer for
an employee under a plan that meets Internal Revenue
Qualified domestic relations order (QDRO). A QDRO is
Code requirements.
a judgment, decree, or order relating to payment of child
Tax-sheltered annuity plan. A tax-sheltered annuity
support, alimony, or marital property rights to a spouse,
plan (often referred to as a 403(b) plan or a tax-deferred
former spouse, child, or other dependent. The QDRO must
annuity plan) is a retirement plan for employees of public
contain certain specific information, such as the name and
Page 3
ADVERTISEMENT
0 votes
Related Articles
Related forms
Form Nj-500-m - Return Of Gross Tax Withheld Form Salaries And Wages, Pension And Annuity Income And Gambling Winnings - 1996
Financial
Worksheet Iii And Iv- Qualified Capital Gain Exclusion And Partial Pension And Annuity Income Exemption
Financial
Form Nj-w4-p - Certificate Of Voluntary Withholding Of New Jersey Gross Income Tax From Pension And Annuity Payments - 1996
Financial
Form Nj-w-4p - Certificate Of Voluntary Withholding Of New Jersey Gross Income Tax From Pension And Annuity Payments
Financial
Form Nj-w-4p - Certificate Of Voluntary Withholding Of New Jersey Gross Income Tax From Pension And Annuity Payments
Financial
Related Categories
Parent category: Financial