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
1099-R - Box 5 -"Non-taxable payments" (Rev. 1/96)
- 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Tax Letter 3 was repealed. It is no longer applicable.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
The IMRF Lump Sum Death Benefit (Rev. 08/2014)
- An explanation of the IMRF lump sum death benefit and information about federal taxes on this benefit
Tax Letter 5
1099-R - How to transfer figures to 1040/1040A (Rev 2/19)
- 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. 2/19)
Tax Letter 7
Can I contribute to an IRA?
Please see the webpage IMRF and IRAs for current information.
Tax Letter 8
Taxable and non-taxable portions of IMRF pensions
(Rev. 6/08)
- 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
Member payments to IMRF (Rev. 01/18)
- How to report a payment you made to IMRF on your federal income tax return (Refer to IRS Pub.525)
Tax Letter 10
General Rule vs. Simplified General Rule (Rev. 6/08)
- 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
Member Portion of ERI payments (Rev. 08/22)
- 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
Annual Pension Increase (Rev. 08/22)
- An explanation of IMRF annual pension increase calculations for Tier 1 and Tier 2 members.
Tax Letter 13
IMRF Benefit Payments Federal Income Tax Withholding (Rev. 08/22)
- 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
EGTRRA Tax Credit and IMRF contributions (Rev. 09/07)
- 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
When an Employer Pays for Member Past Service or ERI Costs
Please see Section 4.24 of the Authorized Agent Manual for current information.
Tax Letter 16
Living Trust as a Beneficiary (Rev. 08/22)
- An explanation of what happens when a member names a living trust as the beneficiary for IMRF death benefits.
Tax Letter 17
Issuing IRS W-2 forms to IMRF members (Rev. 08/22)
- 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. 08/22)
- 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
Supplemental Benefit Payment ("13th payment")
(Rev. 02/24)
- A explanation of the supplemental benefit payment ("13th payment") and how it is calculated.
Tax Letter 20
Tax Deduction for Retired Public Safety Officers
(Rev. 2/19)
- Explains eligibility for this tax deduction.
- Provides excerpt of IRS Publication 575, "Pension and Annuity Income."