Income Taxes and Your LAGERS Benefit

Retiree Resource: Winter 2024

LAGERS will mail your 2023 IRS Form 1099-R in January. Your 1099-R includes important information, including your gross benefit amount from LAGERS, your taxable benefit amount, and Federal and State Taxes withheld. Be sure to provide this document to your tax professional. New retirees who received a PLUS payment in 2023 will receive a separate 1099-R form for their PLUS distribution.

As a reminder, tax time is a great time to review your withholding amounts and make any changes. You can update your tax withholdings on your myLAGERS account at any time.

Why has my benefit amount changed?
As a reminder, LAGERS will apply the new Federal tax tables on your February benefit. You may notice a small change in your benefit amount as a result of this update. Although LAGERS no longer mails check stubs, you can check your new benefit amount on your myLAGERS account.

Special Note for Retirees Who Had a HELPS Withholding from LAGERS in 2023
Withholding from LAGERS in 2023 Retirees who had health and long-term care premiums withheld from their LAGERS benefit in 2023 under the former HELPS provision will receive a letter containing their 2023 withholding amounts. Please note, because LAGERS is no longer withholding these premiums, your withholdings amount from LAGERS is for a partial year. If your partial LAGERS withholdings are less than the full deduction, but you otherwise qualify, you can still claim the full deduction.

For all tax years beginning in and after 2024, eligible public safety officers can continue to claim the HELPS deduction even though LAGERS is no longer withholding the premium.

Missouri Public Pension Exemption
For tax year 2023, married couples with Missouri adjusted gross income less than $100,000 and single individuals with Missouri adjusted gross income less than $85,000 may deduct up to 100 percent of their public retirement benefits, to the extent the amounts are included in their federal adjusted gross income. The total public pension exemption is limited to the maximum social security benefit of each spouse. Tax filers exceeding the income limits may qualify for a partial exemption. The income limits are set to be eliminated for the tax year starting January 2024.

Visit or contact your tax professional for more information on how these changes may impact you.