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IRS Form 1099-R Frequently Asked Questions
Q: What is a 1099-R?
A: IRS Form 1099-R is an annual statement of disbursements and applicable taxes withheld by a retirement plan. Each year, the Oklahoma Teachers Retirement System (OTRS) sends a 1099-R to all retired members who received benefits in the previous calendar year. Any active members who took a distribution of their employee contributions after they left employment with a participating employer will receive a 1099-R, as well as beneficiaries of active or retired members if they received some form of survivor benefit.
Q: When are 1099-R forms mailed? (OR) When will I get my 1099-R?
A: Forms will be mailed no later than January 31st of the current year. Please allow for normal delivery time. If you have not received your Form 1099-R by February 16th, contact OTRS using contact information below.
Q: Are 1099-Rs available on the Client Portal?
A: Yes. 1099-Rs will be accessible through the MyOTRS Client Portal. They should be available by February 1st. If you have not registered for access to the portal, please complete the registration at the link below. Please allow 10-15 business days for your PIN number to arrive in the mail that will allow you to complete the registration process. You may contact OTRS if you have questions about the portal using the contact information below. https://myotrs.trs.ok.gov/ We may be contacted by the following methods:
E-Mail: email@example.com Fax: (405) 522-2521 Phone: (877)738-6365 or (405)521-2387
Q: Why is the taxable amount (Box 2a) less than the gross distribution (Box 1)?
A: There were after-tax dollars in the retirement account. This occurs if after-tax retirement contributions were made or after-tax money was used as payment for a service purchase, redeposit or other billing, etc. This reduces the taxable portion of the total amount, thus accounting for the difference in the two amounts.
Q: Where do I find the amount withheld for federal and state taxes?
A: The amount of federal income tax withheld is located in Box 4, and the state tax withheld is found in Box 10.
Q: Why was there little or no taxes withheld?
A: The amounts of federal and state income taxes withheld are based on the instructions you provided to OTRS. If you instructed OTRS to use the IRS and Oklahoma tax withholding tables to calculate your withholdings, and your benefit is less than the minimum amount required to have taxes withheld (based on filing status, exemptions and subtractions), then little or no taxes were withheld during the year. *** OTRS does not provide tax advice regarding the amounts to be withheld *** Your withholding elections can be changed by completing and returning the form at the following website, or by contacting OTRS and requesting that we mail you a “Tax Withholdings” form. https://www.ok.gov/TRS/documents/Monthly Tax Withholding Request online Nov 2015.pdf Tax Withholdings forms can be returned by mail to: Mail: Oklahoma Teachers Retirement System P.O. Box 53524 Oklahoma City, OK 73152-3524
Q: Why does the amount in Box 1 (Gross distribution) not match the total deposited into my account?
A: The amount deposited into your account is a net amount after subtracting things withheld from your benefit payments like taxes, insurance, levies, garnishments, membership dues, etc.
Q: What do the different boxes on the 1099-R represent?
Box 1 Box 1 Gross Distribution = total amount paid Box 2a Box 2 Taxable Amount = funds that are subject to taxes Box 4 Box 4 Fed. Income Tax Withheld = federal taxes withheld from the distribution and paid to the IRS Box 5 Box 5 Employee contributions = funds that have already been taxed and will not be taxed again. Box 7- Clients Box 7 Distrib. Code = Code used when filing taxes. Code 1 is an early distribution of retirement funds (under 55 the year terminated or under 59 1/2 at the time of withdrawal - will pay 10% penalty). Code 2 is an early distribution of retirement funds, exception applies. Code 3 is a disability retirement. Code 7 is a regular distribution of retirement funds. Code G is used for rollovers. Consult a tax professional for more information regarding codes. Box 7 - Beneficiaries Box 7 Distrib. Code = Code used when filing taxes. Code 4 - payment to decedent's beneficiary, including an estate or trust. Code 4G - Direct Rollover. Consult a tax professional for more information regarding codes. Box 9 Box 9 - Percentage of total distrib. = Percentage of the total amount received that is represented on this form Box 10 Box 10 State Tax withheld = Oklahoma state taxes withheld from the distribution and paid to the OK Tax Commission Insurance Premiums Amount of insurance premiums withheld
Q: What is the State ID number for OTRS?
A: The “PAYER” on the 1099 form is the Oklahoma Teachers’ Retirement System (OTRS) since OTRS “pays” the benefit to the “recipient”. A PAYER must have a federal ID number on the 1099. Some people refer to it as a “State ID Number” but this federal ID number is only used for federal tax purposes and other limited purposes. So the “State ID number” for 1099 purposes is really the OTRS Federal ID Number. The OTRS Federal ID Number is 73- 6028563.
Q: Why did I receive multiple 1099-Rs from OTRS?
A: Please do not discard any tax form you receive as you may have received a payment, other than a normal retirement, that required a different distribution code. Some of the reasons why you may have been issued two or more 1099-R forms are:
• You may have reached the age of 59½* at some point during the year *one 1099-R you receive will have Code 2
(early distribution, with exceptions) in box 7 for the portion of the year’s benefits prior to turning 59½ and another
1099-R will have Code 7 (normal distribution) in box 7 for the portion of the year after turning 59½.
• You may have received a distribution as a beneficiary
• You may have taken a distribution from your own account You should be able to determine from the amounts, or by
the distribution code listed in box 7, which 1099-R is for which distribution. If you still have questions, contact
Q: How do I determine how much was withheld from my retirement for medical insurance premiums?
A: If you had medical insurance premiums withheld from your OTRS benefits, that amount will be clearly marked in the “Insurance Premiums” box on your 1099.
Q: How do I get a duplicate copy of my 1099-R? (OR) how do I get a copy of my 1099-R if I did not receive it?
A: You may request a duplicate Form 1099-R in writing, via fax or United States Postal Service. Your current mailing address must match our records before a 1099-R will be mailed to you. All requests must include your name, Social Security number, tax year requested, mailing address, daytime telephone number, and signature. Please allow 10-15 business days to receive your 1099-R. In addition, duplicates can be obtained through the Client Portal called MyOTRS. Instructions for getting access to the Portal are in a prior Question near the beginning of this FAQ document.
We may be contacted by the following methods:
Phone: (877)738-6365 or (405)521-2387 or Fax: (405) 522-2521
Mail: Oklahoma Teachers Retirement System P.O. Box 53524 Oklahoma City, OK 73152-3524
A: Has your address changed? If it has, we require an updated address change form which can be located on the OTRS website under the “Forms” tab as follows: http://www.ok.gov/TRS/documents/Name_Address Change.pdf
The IRS’ 1099-R website may be referenced as well: http://www.irs.gov/pub/irs-pdf/f1099r.pdf
Box 1: Shows the total amount you received this year.
Box 4: Shows federal income tax withheld.
Box 5: Generally, this shows the employee’s investment in the contract (after-tax contributions). (Employee’s after tax contributions – made while you were employed. i.e. (if you made after-tax retirement contributions, used after-tax money as payment for a service purchase, redeposit or other billing, etc.)
Box 7. The following codes identify the distribution you received*:
1 — Early distribution, no known exception (in most cases a withdrawal, under age 59½).
2 — Early distribution, exception applies (under age 59½).
3 — Disability. 4 — Death.
4G — Death, Direct Rollover
7 — Normal distribution.
G — Direct Rollover
*See the back side of copy "C" of your 1099-R form for further explanation of distribution codes
Box 10 on OTRS 1099: State Income Tax Withheld
Insurance Premiums: Insurance premiums withheld from retirement benefit checks for the calendar year.