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  • Understanding the Substitute W-4P Form

    Jun 6, 2022, 11:28 AM By MOSERS

    Regarding information needed for retirement process, where or how do I obtain the "withholding amounts from benefit for federal and Missouri state taxes", is this from a check stub for when taxes are filed each year

    Each person’s situation may be different, and we cannot advise you on your tax liability as it pertains to your MOSERS pension. We suggest you contact the Missouri Department of Revenue and/or a qualified tax advisor about your tax liability and to determine your withholding amounts.

    You will elect both your Missouri state and your federal tax withholdings on the Substitute W-4P form and submit it to MOSERS. The fastest, easiest way to submit it is by logging in to myMOSERS. You may also submit it to us via mail, email, or fax (see our Contact page for details). Please note that the amount of withholdings you elect does not change your tax liability.

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  • Taxes & Penalties on Pensions

    Apr 19, 2022, 10:41 AM By MOSERS
    If I take early retirement next year (2023), at age 57, with 15 years of service, will I be penalized with taxes for taking my pension?

    Your MOSERS benefit is subject to normal federal taxes. It is also subject to normal Missouri state income taxes if you are a resident of Missouri. However, if you are a Missouri resident, you may qualify for the Public Pension Exemption.

    Visit the Missouri Department of Revenue's Public Pension Exemption page or read our Missouri Public Pension Exemption flyer for more information.

    IRS Tax Penalties: Taking your MOSERS defined benefit (DB) pension at age 57 does not subject it to IRS tax penalties. However, taxes and/or penalties related to other distributions include:

    • There may be a 10% IRS tax penalty if you are younger than age 59 ½ at the time of payment, elect BackDROP*, and take a lump-sum cash payment. If you terminate employment in or after the year you reach age 55, this penalty will not apply. Additionally, MOSERS is required to withhold 20% of a BackDROP cash payment for federal taxes. More details are available in the Special Tax Notice brochure on our website. In such a situation, you can avoid the IRS tax penalty by rolling over the BackDROP payment to a qualified retirement account such as with MO Deferred Comp and not withdrawing it until you meet all IRS regulations (generally speaking, that is after you attain age 59 1/2 but there are exceptions, see page 4 of the Special Tax Notice brochure (BackDROP and Refunds), including one for public safety employees).
    • If you have made pre-tax contributions to the MO Deferred Comp plan (an internal revenue code section 457(b) plan), distributions from that plan following retirement or termination of service at any age are subject to ordinary income tax only.
    • Employer “match” contributions made on behalf of an employee to a 401(a) plan are subject to an additional 10% penalty if withdrawn prior to age 59 1/2.

    Be sure to check with your financial institution or a tax advisor for information about your tax liability when you begin withdrawing your funds.

    *BackDROP is available only to general state employees who are members of MSEP & MSEP 2000 and who work at least two years beyond normal retirement eligibility.

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  • Your W-2 and 1099-R Tax Form

    Apr 6, 2022, 8:30 AM By MOSERS
     I retired from the state of Missouri in October 2021 am needing access to my 2021 W2 and 2021 1099R. Please tell how to access your system for this information. Please e-mail me with instructions. Thank you. 

    Your W-2 form comes from your employer, not from MOSERS. You will need to reach out to your employer for your W-2.

    MOSERS provides retirees and benefit recipients with a 1099-R tax form. We mailed 1099-R forms at the end of January. You can also access it online by logging into myMOSERS. You will find it under Personal Information and available for you to print. This form lists your 2021 retirement benefit income from MOSERS. You will need this form to file your income tax return. If you receive more than one benefit from MOSERS, you may receive more than one 1099-R from us. If you are unable to log in to myMOSERS, call us at (800) 827-1063 or (573) 632-6100 and we can mail you a replacement. For security reasons, we cannot email it to you.

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  • State Taxes and BackDROP

    Mar 23, 2022, 1:31 PM By MOSERS
    As a recent retiree, I had a bad shock from my 2021 taxes when I discovered state withholding taxes were not taken out of my lump sum retirement benefit.  Despite the language on the BackDrop distribution form mentioning state and local taxes were my responsibility, I assumed since MOSERS took care of the Federal taxes they would take care of state taxes.  I don't recall this being covered in various pre-retirement information. You may want to make this information more prevalent to retirees,

    Thank you for your email. While we mention the member’s responsibility for state taxes on BackDROP cash payments in the Ready to Retire seminar (and reference book) and on the BackDROP Distribution form, we appreciate your feedback and will try and highlight this point in the future. 

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  • W-2 vs.1099-R

    Jan 26, 2022, 3:24 PM By MOSERS
    tax forms. W2 vs. Form 1099R Are these the same forms

    No, they are not the same. A W-2 form comes from an employer, not from MOSERS. A W-2 shows income you’ve earned from your employer. A 1099-R shows distributions you have received from pensions and other retirement plans.

    MOSERS provides you with a 1099-R tax form. This form lists your 2021 retirement benefit income from MOSERS. You will need this form to file your income tax return. If you receive more than one benefit from MOSERS, you may receive more than one 1099-R from us.

    We will mail your 1099-R form by the end of January. You can also access it online by logging into myMOSERS You will find it under Personal Information and available for you to save or print.  If you are unable to log in to myMOSERS, call us at (800) 827-1063 or (573) 632-6100 and we can mail you a replacement. For security reasons, we cannot email it to you.

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  • 1099-R Tax Forms are Coming Soon

    Jan 11, 2022, 4:21 PM By MOSERS
    Hi, When will we receive our 2021 tax forms for pensions and for deferred comp rmds? Thanks!

    We will mail your MOSERS 1099-R tax form to you by the end of January. After we have mailed it, your MOSERS 1099-R will also be available for you to view and print or save from your Document Express online mailbox after you log in to myMOSERS. This form lists your 2021 pension benefit income from MOSERS. You will need this form to file your income tax return. If you receive more than one benefit from MOSERS, you may receive more than one 1099-R from us. For more information, please see our latest news item regarding 1099-Rs.

    Your 1099-R tax form from the MO Deferred Comp Plan will be available in your online account by the fourth week of January 2022. The plan will also mail you a copy no later than January 31, 2022.

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  • Public Pension Exemption - State Taxes

    Aug 30, 2021, 10:07 AM By MOSERS
    With the inflation that has occurred in the last year is there any way you can lobby the Governor and Legislators to eliminate state tax on state retirement

    If you are a Missouri resident, you may qualify for the Public Pension Exemption. Visit the Missouri Department of Revenue's Public Pension Exemption page or read our Missouri Public Pension Exemption flyer for more information.

    In order to be eligible for the full deduction, your Missouri adjusted gross income must fall within certain income limitations. If your income exceeds the limitation, you may qualify for a partial exemption.

    Contact the Missouri Department of Revenue to see if you qualify or ask your tax professional.

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  • Important Tax Information

    May 14, 2021, 10:38 AM By MOSERS
    Turbotax is asking me for "Plan cost at annuity starting date" and I have no idea what this is. Can you help me?

    For your MOSERS benefit, "plan cost at annuity starting date" is the total after-tax contributions used to calculate the exclusion amount (amount of your monthly benefit excluded from taxable income). It is important to note that this total doesn’t include your Employee Contributions, as they are paid in pre-tax. However, the total may include any purchases you made with after-tax funds or payroll deductions. 

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  • Filing Taxes and Living Out of State

    Apr 19, 2021, 8:27 AM By MOSERS
    I receive pension but i live in Michigan. How do i file taxes if any?

    You will need your 1099-R form from MOSERS to file your federal income tax return. You may have already received yours in the mail back in early February. If you prefer an electronic copy of your 1099-R or if you find you need a replacement copy of it, simply log in to  myMOSERS  and you will find it listed under Personal Information. It is available to print.

    If you lived in Missouri at any point during the tax year, you may owe Missouri state taxes, but you may also qualify for the Missouri State Public Pension Exemption. Contact the Missouri Department of Revenue and state tax agency in Michigan for additional information about and to inquire if you will need to file a state tax return in either or both states. 

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  • Public Pension

    Mar 25, 2021, 10:12 AM By MOSERS
    Is MOSER retirement considered a public pension for tax purposes?

    Yes, that is correct. The benefit you receive through MOSERS is considered a public pension for tax reporting purposes. If you are a Missouri resident, you may qualify for the Public Pension Exemption. Visit the Missouri Department of Revenue's Public Pension Exemption page or read our Missouri Public Pension Exemption flyer for more information. Additionally, you can visit the Taxes page on our website.

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Disclaimer

We strive to provide the most accurate information possible in our answers to Rumor Central questions. However, occasionally, laws, policies or provisions change and individual circumstances may vary. Please contact a MOSERS benefit counselor or see the handbooks in our website Library for more detailed information. If there is any difference between the information provided in this blog or on the MOSERS website and the law or policies that govern MOSERS, the law and policies will prevail. See our Privacy, Security & Legal Notices for more information.