Browsing: tax-free

Q. I am getting ready to retire in three weeks after 37 years with the Civil Service Retirement System. While working with the personnel office and getting the package ready to send to OPM, I brought up about the CSRS contribution balance. Back in 1986 they converted to the new system and I had a rather large balance in the CSRS contributions. We noticed that our balance went to zero when the new pay stubs were issued. They told us not to worry back then and the money would be added back in when we retired. My current leave and…

Q: I am helping with my sister’s income taxes. On her 1099-R, Box 2A, the taxable amount is unknown. I don’t know how to report whether her survival annuity is taxable or nontaxable. A: While most of her annuity will be taxable, a portion will not. To find out how much of it will be tax-free, download a copy of IRS Publication 721, Tax Guide to U.S. Civil Service Retirement Benefits.