Question

For a partially taxable pension or annuity, the Simplified Method:

Answer 1

Simplified method for pension/annuity must be used for
a) Starting date of annuity was after July 1,1986 and simplified method was used last year to determine the taxable amount
b) Annuity starting date was after Nov 18,1996 and
i) The payments are from a qualified employee plan, qualified employee annuity/tax sheltered annuity
ii) As on the date, the minimum number of guarenteed payments are less than 5 or you are under age 75.
c) To figure the tax free part of payments if payments are received from a qualified returement plan after Nov 18,1995