Taxes and 1099-Rs

Your LAGERS retirement benefit is subject to all applicable State and Federal taxes. LAGERS will withhold taxes from your retirement benefit as directed by you. It is important to keep in mind that regardless of how much you withhold, you are responsible for any tax liability each year.

Withholding Form – Federal & MO

What is Taxable?

  • The portion of your benefit funded through employer contributions and investment returns
  • Interest earnings on your employee contribution account

What is Not Taxable?

  • If you have employee contributions with LAGERS. These contributions were made on an after-tax basis and are not taxable at the time of withdrawal.

Partial Lump Sum Option (PLUS)

If you elect to take the Partial Lump Sum Option, that lump sum is also subject to all applicable state and federal taxes. LAGERS will automatically withhold 20% and forward to the IRS if the PLUS is disbursed directly to you. Please keep in mind that your actual tax liability may be more or less than 20%.

A retiree does have the option to directly roll over the entire PLUS amount to another qualified retirement account to delay any tax implications. If you elect this option, LAGERS will send you a direct rollover form during your application process.

You may also be subject to early distribution penalties, if you receive the payment before attaining age 55 if you are a general employee and age 50 if you are a public safety employee.

Understanding Your 1099-R

Understanding Your 1099-R

LAGERS will mail all retirees a 1099-R form by the end of January every year. While similar to a W-2, the 1099-R form is issued specifically for pension recipients and will include information regarding the retiree’s benefit paid during the past tax year.

How to Adjust Your Withholdings

Missouri Public Pension Exemption

Missouri Public Pension Exemption

Public Safety Long-Term Care & Health Deduction

Public Safety Exemption