Tax and Topic letters address tax issues and other topics related to IMRF benefits. If you don't find an answer to your question here, please consult your tax advisor or contact the Internal Revenue Service.
Tax Letter 1
- How does IMRF calculate the amount shown in Box 5 on your 1099R
- An explanation of "previously taxed contributions" and "non-taxable payments"
Tax Letter 2
1099-R - Box 2a - "General Rule" (Rev. 6/08)
- How does IMRF calculate the amount shown in Box 2a on your 1099R
- An explanation of "previously taxed contributions,"and the "exclusion ratio"
Tax Letter 3
The IMRF death benefit for retired members (Rev. 10/96)
Tax Letter 3 was repealed. It is no longer applicable.
Tax letter 4
- An explanation of the IMRF lump sum death benefit and information about federal taxes on this benefit
Tax Letter 5
- An explanation of the 1099-R you received from IMRF
- How to report IMRF benefit payments on IRS form 1040 or 1040A
Tax Letter 6
How to report disability benefit payments on your Illinois and federal income tax return (Rev. 10/08)
Tax Letter 7
- How does your participation in IMRF affect your ability to contribute to an IRA?
Tax Letter 8
- What portion of your pension is not subject to federal income tax:
- An explanation of IRS Simplified General Rule (Safe Harbor Calculation)
Tax Letter 9
- How to report a payment you made to IMRF on your federal income tax return (Refer to IRS Pub.525)
Tax Letter 10
- An explanation of how a member or member's surviving spouse recovers the member's previously taxed contributions under the "General Rule" and under the "Simplified General Rule"
Tax Letter 11
- An explanation of previously taxed and tax-deferred member contributions used to pay the member portion of ERI and how such contributions are illustrated on a member's Certificate of Benefits.
Tax Letter 12
- An explanation of IMRF annual pension increase calculations for Tier 1 and Tier 2 members.
Tax Letter 13
- An explanation of why IMRF withholds federal income tax from a monthly pension or disability benefit, even though the member did not specify to IMRF that any amount be withheld.
Tax Letter 14
- An explanation of why your IMRF contributions do not qualify for the "Saver's Tax Credit" under the Economic Growth and Tax Relief Reconciliation Act (EGTRRA).
Tax Letter 15
- An explanation of the impact on IMRF and federal reporting when an employer wants to pay for a member’s past service costs, or for a member’s Early Retirement Incentive (ERI) cost.
Tax Letter 16
- An explanation of what happens when a member names a living trust as the beneficiary for IMRF death benefits.
Tax Letter 17
- An explanation of how to fill out IRS Form W-2, "Wage and Tax Statement," for members who make contributions to IMRF.
Tax Letter 18
Can an IMRF member take a tax deduction for purchasing IMRF past service or paying for ERI? (Rev. 02/08)
- An explanation of how to report the payment for purchased or reinstated IMRF service credit on an IMRF member's federal tax return.
Tax Letter 19
- A detailed explanation of the supplemental benefit payment ("13th payment") and how it is calculated.
Tax Letter 20
- Explains eligibility for this tax deduction.
- Provides excerpt of IRS Publication 575, "Pension and Annuity Income."