Pension and Annuity Income›2025 Returns
Contents
Publication 575 — Pension and Annuity Income · 2026-10-03 edition · updated 2026-10-04 · United States
Future Developments . . . . . . . . . . . . . . . . . . . . . . . 1
Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
General Information . . . . . . . . . . . . . . . . . . . . . . . . 4
Variable Annuities . . . . . . . . . . . . . . . . . . . . . . . . 5 Section 457 Deferred Compensation Plans . . . . . . 5 Disability Pensions . . . . . . . . . . . . . . . . . . . . . . . 6 Insurance Premiums for Retired Public Safety
Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Railroad Retirement Benefits . . . . . . . . . . . . . . . . 6 Withholding Tax and Estimated Tax . . . . . . . . . . . 9
Cost (Investment in the Contract) . . . . . . . . . . . . 10
Taxation of Periodic Payments . . . . . . . . . . . . . . . 11
Fully Taxable Payments . . . . . . . . . . . . . . . . . . . 12 Partly Taxable Payments . . . . . . . . . . . . . . . . . . 12
Taxation of Nonperiodic Payments . . . . . . . . . . . . 14
Figuring the Taxable Amount . . . . . . . . . . . . . . . 16 Loans Treated as Distributions . . . . . . . . . . . . . . 18 Transfers of Annuity Contracts . . . . . . . . . . . . . . 19 Lump-Sum Distributions . . . . . . . . . . . . . . . . . . 20
Rollovers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Special Additional Taxes . . . . . . . . . . . . . . . . . . . 25 Tax on Early Distributions . . . . . . . . . . . . . . . . . 26 Early Distribution Repayments . . . . . . . . . . . 31 Tax on Excess Accumulation . . . . . . . . . . . . . . . 32
Survivors and Beneficiaries . . . . . . . . . . . . . . . . . 34
Disaster-Related Relief . . . . . . . . . . . . . . . . . . . . . 34
Qualified Disaster Recovery Distributions . . . . . . 35 Taxation of Qualified Disaster Recovery
Distributions . . . . . . . . . . . . . . . . . . . . . . . . . 36 Repayment of Qualified Disaster Recovery
Distributions . . . . . . . . . . . . . . . . . . . . . . . . . 36 Recontribution of Qualified Distributions for
the Purchase or Construction of a Main Home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Loans From Qualified Plans . . . . . . . . . . . . . . . . 37
How To Get Tax Help . . . . . . . . . . . . . . . . . . . . . . . 38
Worksheet A. Simplified Method . . . . . . . . . . . . . 43
Recapture Allocation Chart . . . . . . . . . . . . . . . . . 44
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
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