1099-R Information for 1977 Fund Members Receiving Disability Benefits
My disability occurred in the line-of-duty before July 1, 2000. How does this affect my taxes?
If you were hired before Jan.1, 1990 and suffered a line-of-duty injury on or before July 1, 2000, part of your disability benefits may be non-taxable. The part of the benefit that is taxable if your benefit is determined to be in the line-of-duty is the part that is based on service over 20 years. You may be able to receive favorable tax treatment if you meet specific impairment qualifications. Go online to HEA 1048 for more information.
My disability occurred before July 1, 2000, but not in the line-of-duty. How does this affect my taxes?
Disability benefits for members hired before Jan. 1, 1990 that are not related to an injury while on duty are fully taxable until age 52. After age 52, your disability benefit converts to a regular retirement benefit and you will begin to recover any tax basis.
I receive a disability benefit for a Class 1 impairment. How does this affect my taxes?
Your disability benefit is not subject to federal income taxes.
I receive a disability benefit for a Class 2 impairment. How does this affect my taxes?
The part of the benefit that is taxable is the part that is based on service. The non-taxable part of this benefit is the part based on 22 percent of base salary and the additional benefit of 10 percent – 45 percent that is based on degree of impairment.
I receive a disability benefit for a Class 3 impairment. How does this affect my taxes?
Disability benefits are fully taxable until the benefit converts to a retirement benefit at age 52. At that point, you will begin to recover your tax basis from your monthly retirement benefit.
I receive a Class 1 disability benefit. If I become eligible for a supplemental benefit, how will my taxes be affected?
If you are receiving a Class 1 or Class 2 disability benefit and at age 52 become eligible for a supplemental benefit, that benefit is taxable.
Why did I receive a Form 1099-R?
We are required by federal law to mail a Form 1099-R to anyone who received money from the fund in 2016. This information is also provided to the Internal Revenue Service (IRS).
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. The Internal Revenue Service (IRS) provides instructions for completing tax returns, and also offers information online here. You may wish to contact your tax advisor regarding questions related to completing your tax return.
Why did I receive more than one Form 1099-R from INPRS?
If you received distributions in 2016 of more than one benefit type, then you will receive a Form 1099-R for each benefit type. The benefit type description is displayed in Box 7 of the Form 1099-R. This description will assist you in associating the amount reflected on each form with its proper benefit type.
What is included in Box 5 Employee Contributions (Non-taxable)?
Box 5 represents the non-taxable portion of your 2016 distributions.
Why are there blank boxes on my Form 1099-R?
The Form 1099-R was designed by the IRS to apply to many different types of organizations and types of payments. As a result, there are several boxes that do not specifically apply to members of the 77 fund – those boxes are left blank.
How do I get a duplicate copy of my Form 1099-R?
If you are a registered user an INPRS online account, you can view or print your 1099-R beginning Jan. 31, 2017, by logging in here. You can also request a duplicate copy of your Form 1099-R after Feb. 15, 2017, by calling us toll-free at (888) 286-3544.
What should I do if I have not received my 2016 Form 1099-R in the mail?
The 2016 Form 1099-Rs will be postmarked by Jan. 31, 2017. Please allow for normal delivery time. Your 1099-R will also be available for you to download from your online account. If it is not available online and you have not received your Form 1099-R by Feb. 15, 2017, contact us toll-free at (888) 286-3544.
Which payments are included on the 2016 Form 1099-R?
The 2016 Form 1099-R reflects all amounts paid during the 2016 tax year, regardless of the month in which the amounts were paid. The 2016 Form 1099-R includes payments with issue dates from Jan. 1 through Dec. 31.
How do I correct my address on my 2016 Form 1099-R?
An incorrect address does not affect the validity of your Form 1099-R. However, you should notify us of your correct address to ensure prompt delivery of benefit payments and/or correspondence. You may do this online here or contact us toll-free at (888) 286-3544.
I believe that my INPRS-issued 1099-R is incorrect. What should I do?
For any questions regarding your Form 1099-R, you may send an e-mail by logging on to your online account or call us toll-free at (888) 286-3544.