Department of the Treasury
Contents
Internal Revenue Service
Introduction ............................................................
1
General Information ...............................................
2
Railroad Retirement.............................................
3
Withholding Tax and Estimated Tax.....................
5
Publication 575
Taxation of Periodic Payments .............................
6
Cat. No. 15142B
Investment in the Contract (Cost).........................
6
Fully Taxable Payments.......................................
7
Partly Taxable Payments .....................................
8
Simplified General Rule .......................................
8
Pension and
Disability Retirement ............................................. 11
Disability Payments ............................................. 11
Credit for Elderly or Disabled ............................... 11
Annuity Income
Taxation of Nonperiodic Payments ...................... 11
(Including Simplified
Excess Contributions, Deferrals, and Annual
Additions......................................................... 13
General Rule)
Loans Treated as Distributions ............................ 15
Transfers of Annuity Contracts............................. 16
Lump-Sum Distributions ...................................... 16
For use in preparing
Rollovers ............................................................. 27
1994 Returns
Survivors and Beneficiaries .................................. 29
Special Additional Taxes ....................................... 31
Tax on Early Distributions .................................... 31
Tax on Excess Distributions................................. 32
Tax on Excess Accumulation ............................... 33
Worksheet for Simplified General Rule ................ 35
Index ....................................................................... 36
Introduction
This publication explains how to report pension and an-
nuity income on your federal income tax return. It also
covers the special tax treatment of