Retiree Form 1099-R – UPDATE and FAQs
We used our newly implemented Pension Administration System to generate 1099-R tax forms for our pensioners. By January 31, 2020, over 15,600 1099-R forms were timely mailed to LAFPP pensioners. After the forms were mailed, we were informed that some tax preparers and tax software do not accept the 1099-R tax forms with blank boxes (specifically, Box 2a and Box 4), which report the federal taxable amount and federal taxes withheld. Staff has conferred with our tax counsel and have concluded that corrected 1099-R forms should be issued to the affected members, which will now reflect $0.00 instead of blank boxes.
Notification letters and corrected 1099-R tax forms will be sent
to all affected members with forms that have blank boxes 2a
and/or 4. We anticipate all 1099-R tax forms to be posted in
MyLAFPP for viewing and
downloading by February 29, 2020. Please continue to check
our website for further updates.
PLEASE REVIEW THE FREQUENTLY ASKED QUESTIONS BELOW FOR MORE INFORMATION ON THIS AND OTHER TAX FORM INQUIRIES.
Who will receive a corrected 1099-R tax form and why?
Members with non-taxable pensions (disability) or with no federal
taxes withheld (claiming exempt or based on tax tables) are
mainly affected. These members will first be notified
individually with a letter followed by a corrected tax form to be
received by mail.
Boxes 2a and 4 report the federal taxable amount and federal income taxes withheld, respectively. If there was no federal tax withheld or the taxable amount is zero, then box 2a and/or 4 of the original 1099-R was left blank to represent $0.00. The corrected forms will provide clarification and indicate $0.00 rather than a blank box.
What if I already filed my tax return?
You may need to file an amended return. Please consult with your
personal tax advisor for further advice. We suggest you keep your
corrected copy for future reference.
I already received a letter that my 1099-R tax form will be delayed, is this the same issue?
No. A small number of forms were reviewed by LAFPP staff and were
found to have errors. Your letter dated January 31,
2020 was to notify you of the delay. You will be mailed your
correct 1099-R form to the address on file no later than February
OTHER 1099-R QUESTIONS
I never received a 1099-R for prior year(s) in retirement, why am I receiving one now?
- Beginning with the 2019 tax year,
LAFPP issued a Form 1099-R to all pension recipients. In
prior years, we did not issue a tax form for pensioners and
qualified survivors whose payments were 100% non-taxable.
- You will be receiving a notification letter and a corrected 1099-R tax form with a $0.00 in boxes 2a and/or 4 to indicate there is no federal taxable amount and/or no federal taxes were withheld. Receiving this form did not change your tax status and your pension will continue to be non-taxable.
Your form indicates your total pension amount for 2019.
The primary benefit of this change is that you will no longer
need to request a Pension Verification Letter from LAFPP, as the
Form 1099-R can now be used as confirmation of your annual
pension amount for various financial matters.
Why did I receive multiple 1099-R forms?
Here are some of the possible reasons:
- You exited DROP and received at least one monthly pension payment in the same year (one 1099-R for DROP rolled over amount, one form for DROP lump sum cash out, and one 1099-R for monthly pension payments)
- You have a non-tax dependent covered on your LAFPP-subsidized health insurance plan (e.g., domestic partner or child of a domestic partner)
- You have moved out of the country (you may receive 1042S if you have moved and submitted Form W8BEN)
- Your IRS tax distribution code changed during the year (e.g., when member attains 59 ½ years old during the year)
- You received pension payments based
on your City service and from a qualified domestic relations
order (QDRO) or as a beneficiary
Why does my 1099-R Taxable Amount (Box 2a) not equal the total amount on my pension statement?
You should be comparing the total in your pension statement to
box 1 of your 1099-R. Box 1 reflects the income received in
tax year 2019. Box 2a is the taxable portion of your income
received. Some or all of your income may not have been
taxable, which is why box 1 and box 2a may be different.
Box 2a may not be equal to the total amount in your pension statement, because you may have:
- Received more than one 1099-R form (to cover various benefits)
- Made post-tax contributions as an Active member (for tax year 2019)
- Had a Workers’ Compensation deduction (which reduces your taxable amount)
- A non-taxable pension
What if I did not receive my 1099-R or would like a copy?
Your form was mailed to the address on file with LAFPP. Please allow time for mailing before requesting a duplicate. Requests for duplicate forms will be processed and mailed after February 10, 2020. If you would like to pick up a replacement copy, please call the Accounting Section at (213) 279-3040 or (844) 88-LAFPP ext. 93040 at least one day prior to your visit. This will allow staff to have your document ready by the time you arrive.
- To update your mailing address on file with LAFPP you must change in two places:
- Access MyLAFPP
- Click Personal Information
- Click Address & Contact Information (to confirm information)
- Click Update Address (to change mailing address)
- Click Submit
- Return to MyLAFPP homepage (by clicking on LAFPP logo) and click Retiree Benefits
- Click Pension Payment
- Click Pension Payment Information (to confirm payment confirmation address is your updated mailing address)
- If necessary, click Update Pension Payment (to change payment confirmation address) and click Submit
- For those who would prefer not to make changes online, please complete a Change of Address Form and fax or email, as instructed. This form can also be sent to you upon request.
When can I access the 1099-R online?
We anticipate the forms will be posted in MyLAFPP by February 29, 2020.
How do I view online?
- Access MyLAFPP
- If you have not registered with MyLAFPP, here are instructions on how to register
- Click Forms & Correspondence
- Click Statements
- Click 1099-R
How do I make changes to my tax withholding elections?
- You can complete an
Income Tax Withholding Form and fax or email as instructed
on the form.
- You can make your changes using MyLAFPP in 5 easy steps:
- Access MyLAFPP
- Click Retiree Benefits
- Click Tax Withholding
- Click Update Pension Tax Withholding Instructions
- Fill in all the information. Please fill in all the information even if you are only changing either federal or State of California withholdings
- Click Submit
IMPORTANT NOTE: In addition to Federal
taxes, LAFPP is responsible for tax withholding only in the state
of California. Since LAFPP does not have an operating
business presence in other states, we do not offer tax
withholding for states other than California.
I’m having trouble logging in to MyLAFPP.
Please contact the Communications & Education Section at (213)
279-3155 or (844) 88-LAFPP ext. 93155.
Please contact the Accounting Section at (213) 279-3040 or (844) 88-LAFPP ext. 93040, if you have questions regarding:
- 1099-R – General Information
Request for Duplicate Copies (after February 10)
Please contact the Retirement Services Section at (213) 279-3125 or (844) 88-LAFPP ext. 93125, if you have questions regarding:
- State and Federal Withholdings and Changes
Please contact the Communications & Education Section at (213) 279-3155 or (844) 88-LAFPP ext. 93155, if you have questions regarding: