7.26 Reporting Employee Annuities
Tax treatment of employee annuity payments from a qualified employee plan, qualified employee annuity, or tax-sheltered annuity (7.21) depends on the amount of your contributions and your annuity starting date. These rules are discussed in 7.26 − 7.29. If payments are from a nonqualified employee plan, you must use the rules for commercial annuities (7.23).
Fully taxable payments if you have no investment in the plan.
If you did not contribute to the cost of a pension or employee annuity, and you did not report as income your employer’s contributions, you are fully taxed on payments after the annuity starting date. On your 2012 return, you report fully taxable payments on Line 16b of Form 1040 or Line 12b of Form 1040A.
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