Iowa public employee retirement

[Margaret CPA in OH]

New client has 1099-R, first year. On top it has Total federal employee contributions-$10,000 Total state employee contributions $15,000 SIMPLIFIED GENERAL RULE.

In ATX is there something special about data entry? I see on the bottom space for annuity information. Do I need to ask client about start date, etc. for those fields? The only other one I've seen like this had an information sheet with all this listed.

I checked Pubs. 575 and 939 and am further confused. It seemed that the client must use the 'Simplified Method' not the 'General Rule' as described but what is the 'Simplified General Rule' written in bold caps at the top of the 1099R?

Always something new!

[SCL]

i believe the 1099r will already incorporate the general rule and show/take into account the (fed) gross distribution and taxable distribution...plus the taxable state distribution (manually adjusted on the iowa return).  

[Margaret CPA in OH]

Thanks so much! It does show the taxable amount as $449 less than the gross and this is the same as the employee contributions in box 5.

Is an Iowa return required? She's lived in Ohio for several years. It does show the State/Payer's state tax number as an Iowa number and the state distribution seems to have had an adjustment of another $450, the amount of the employee contribution. I'll check about Iowa filing. She would get credit in Ohio for Iowa tax paid.

Thanks again - we're up too late...

[NECPA in NEBRASKA]

You do not need to file an IA return unless there is IA withholding on the 1099R. It should be taxable where she lives. 

[Margaret CPA in OH]

Thanks again, NECPA! No Iowa withholdings so all seems good now.