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IRS Issues Publication 575 for 2018 Reporting

Technical Resources

The IRS has issued a new version of Publication 575, “Pension and Annuity Income” for use in 2018 reporting.

Publication 575 discusses the tax treatment of distributions received from pension and annuity plans and also shows how to report the income on a federal income tax return. How these distributions are taxed depends on whether they are periodic payments — amounts received as an annuity — that are paid at regular intervals over several years or nonperiodically, in amounts not received as an annuity.

In addition to information about filing, Publication 575 also contains information on the 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;
  • use the optional methods to figure the tax on lump-sum distributions from pension, stock bonus and profit-sharing plans;
  • roll over certain distributions from a retirement plan into another retirement plan or IRA;
  • report disability payments; and
  • report railroad retirement benefits.

The publication also addresses how beneficiaries and survivors of employees and retirees must report benefits paid to them, as well as when additional taxes on certain distributions may apply (including the tax on early distributions and the tax on excess accumulation).

New for 2018 Reporting

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