Expert: Jim Pastore - 5/4/2007

Question
Jim, I saw that you had responded to a similiar question, however, I was injured in the line of duty at age 25. By age 30, I am now fully medically retired and was awarded 66 2/3% pay. I was told that this is tax free.  On my 1099R line 1 says an amount that is equal to 2a.  IF this was tax free, why is the 2a box the same?

Answer
Felix,

Line one is the total Gross Distribution, and Line 2 a is what is taxable. Therefore if your pension is fully taxable line 2 a should say 0. It sounds like you are with Police And Fire pension? Mine is PERS and is only 40% tax free. But I believe Police and Fire is 100%. I would call them to be sure. They can send out a corected 1099 R if they made a mistake.

Jim