IRS Issues Pub. 575, Pension and Annuity Income, for 2018 Reporting

The IRS has posted on its website an updated version of Publication 575, “Pension and Annuity Income,” for reporting concerning 2018.

New for 2018 reporting: The IRS has updated Publication 575 concerning the extended rollover period for qualified plan loan offsets in 2018 or later. For distributions made in tax years beginning after Dec. 31, 2017, a taxpayer has until the due date (including extensions) for the tax return for the tax year in which the offset occurs to roll over a qualified plan loan offset amount.

Publication 575 provides information concerning how to:

• figure the tax-free part of periodic payments under a pension or annuity plan, including using a simple worksheet for payments under a qualified plan;
• figure the tax-free part of nonperiodic payments from qualified and nonqualified plans; and
• use optional methods to figure the tax on lump-sum distributions from pension, stock bonus and profit-sharing plans.

It also discusses how to:

• report disability payments, and how beneficiaries and survivors of employees and retirees must report benefits paid to them;
• report railroad retirement benefits; and
• roll over certain distributions from a retirement plan into another retirement plan or IRA.

Publication 575 also addresses when additional taxes on certain distributions may apply (including the tax on early distributions and the tax on excess accumulation).