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Public Pension ExemptionFeb 21, 2023, 7:55 AM By MOSERSGood morning. How exactly does the public pension exemption work? Do I have to sign up for that or does someone automatically know that I qualify due to the amount I make? I’m confused on how this works. Thanks for any help you can give me.
Your MOSERS pension benefit is subject to normal federal taxes. It is also subject to normal Missouri state income taxes if you are a resident of Missouri. However, because you are a Missouri resident, you may qualify for the Public Pension Exemption as it relates to Missouri state taxes.
In order to be eligible for the full deduction, your Missouri adjusted gross income must fall within certain income limitations. These limitations are not decided by MOSERS, you may contact the Missouri Department of Revenue to see if you qualify or ask your tax professional. If your income exceeds the limitation, you may qualify for a partial exemption. Visit the Missouri Department of Revenue's Public Pension Exemption page or read our Missouri Public Pension Exemption flyer for more information.
How to Submit Tax Withholding FormsFeb 7, 2023, 9:48 AM By MOSERSI wanted to change my tax withholding and after talking to the operator at Mosers, I understand I can't complete the form I used to for a change in the amount. I got the Authorization completed online and printed off to sign, but was unable to fill out the W-4P online so I printed and now am completing by hand. I guess I will have to mail the forms; didn't see instructions that I could email them to you online. And of course since I am needing to complete by hand the W-4P I am unable to email
You are correct, there is a new form, which is required by the IRS as of January 1, 2023, IF you want to make any changes to your tax withholdings. (If you don’t want to make changes, no action is required.) Once you have completed both the Tax Withholding Authorization and the IRS W4-P forms and you have signed and dated them, you can return them to us by:
- Faxing them to (573) 632-6103,
- Scanning them and sending them as an attachment via email to firstname.lastname@example.org,
- Submitting them using the Document Upload feature after you have logged in to myMOSERS
- Depositing them in the drop box outside of our office or bringing them in to the receptionist, or
- Mailing them to us at MOSERS, PO Box 209, Jefferson City, MO 65102-0209
Medical Premiums in RetirementJan 26, 2023, 3:31 PM By MOSERSI retire 2/1/23. I have chosen to pre-pay health care premiums for the remainder of 2023 with my annual leave payout. 1-Are healthcare premiums taken out pre-tax in retirement? 2-As an employee, my premiums are taken out pre-tax to lower my taxable income. Does this happen with a retiree's pension payment? 3-If health care premiums are deducted prior to federal tax deductions (while in retirement) than the prepayment of healthcare premiums (at year-end) would be the same, is that correct?
Congratulations on your upcoming retirement! Let’s address your questions one by one:
- Are healthcare premiums taken out pre-tax in retirement? No. All deductions from your MOSERS pension benefit are POST tax.
- As an employee, my premiums are taken out pre-tax to lower my taxable income. Does this happen with a retiree's pension payment? No. All deductions from your MOSERS pension benefit are POST tax.
- If healthcare premiums are deducted prior to federal tax deductions (while in retirement) than the prepayment of healthcare premiums (at year-end) would be the same, is that correct? No. Healthcare premiums in retirement are NOT deducted prior to federal taxes. So, there may be tax advantage to you to pre-pay your retiree healthcare premiums for the remainder of the calendar year from pay you receive as an active employee. See the information below from the MCHCP website:
Employees whose premiums are collected pre-tax through the cafeteria plan have the opportunity to pre-pay premiums pre-tax as a retiree. Prepaid premiums may only be paid within the same calendar year*. To prepay retirees must submit their enrollment request at least 31 days prior to their retirement date. The first month’s premium for retiree coverage will be divided between the last two active paychecks. Additional prepaid premiums may be collected from the retiree’s last two active paychecks and/or lump sum vacation/compensatory time payroll. Verify this payroll amount with the HR/Payroll personnel to determine how many months of retiree premiums can be prepaid.
*Employees with a retirement date of Dec.1 cannot prepay premiums, since future premiums would be for a different plan year. Employees with a retirement date of Jan.1 can only prepay premiums using funds from their final active payroll (usually Jan.15) and/or their vacation and compensatory time payroll.
W-2 or 1099-R?Jan 25, 2023, 3:52 PM By MOSERSWhen will we get our W2 to file taxes
Your W-2 form shows income you have earned from your employer and comes from your employer, not from MOSERS. You will need to reach out to your employer for your W-2.
MOSERS provides retirees and benefit recipients with a 1099-R tax form. We will mail your 1099-R forms by the end of January. You can also access it online by logging into myMOSERS. You will find it under Personal Information and available for you to print. This form lists your 2022 retirement benefit income from MOSERS. You will need this form to file your income tax return. If you receive more than one benefit from MOSERS, you may receive more than one 1099-R from us. If you are unable to log in to myMOSERS, call us at (800) 827-1063 or (573) 632-6100 and we can assist you. For security reasons, we cannot email it to you.
Tax Withholding Authorization and IRS W-4PJan 23, 2023, 10:41 AM By MOSERSI wanted to change my federal withholding. Has the format changed?? the forms i was using do not appear
Yes, the new forms, Tax Withholding Authorization and IRS W-4P, are required as of January 1, 2023, in order to change your withholding amounts. It does look different than the form from previous years. Please keep in mind the following:
- If you wish to change the amount of taxes being withheld, please submit both the MOSERS form (Tax Withholding Authorization) and the IRS form (W-4P).
- If you are a retiree who is already having taxes withheld, your current withholding remains in effect, and you do not need to submit new forms unless you want to make changes.
- Please visit the Taxes page on our website for more information.
- MOSERS staff cannot advise you on how to fill out tax forms or your tax liability as it pertains to your MOSERS pension. We suggest you contact the IRS and/or a qualified tax advisor about your tax liability and to determine your withholding amounts.
The Difference Between the 1099-R and W-2 forms?Nov 18, 2022, 9:25 AM By MOSERSHi. I retired January 1, 2022. Where would I look to find my 2021 and 2022 W-2.
I believe you may be referring to a 1099-R form.
A 1099-R shows distributions you have received from pensions and other retirement plans. A W-2 form comes from an employer, not from MOSERS. A W-2 shows income you’ve earned from your employer.
MOSERS provides you with a 1099-R tax form. This form lists your 2022 retirement benefit income from MOSERS. You will need this form to file your income tax return. If you receive more than one benefit from MOSERS, you may receive more than one 1099-R from us.
We will mail your 1099-R form by the end of January 2023. You can also access it online by logging into myMOSERS. You will find it under Personal Information and available for you to save or print. If you are unable to log in to myMOSERS, call us at (800) 827-1063 or (573) 632-6100 and we can mail you a replacement. For security reasons, we cannot email it to you.
Taxes and Living Out of StateOct 13, 2022, 8:52 AM By MOSERS
In reading the "rumors" responses, it sounded as if I would not owe Missouri state taxes if I live outside of Missouri (I live in New York State since 2007), and get a pension from MOSERS for working in Missouri before we moved to New York. Is that true?
If you are retired and not a Missouri resident, please contact the Missouri Department of Revenue and state tax agency in your state for additional information, to inquire if you will need to file a state tax return in either or both states, and to determine the taxability of your MOSERS benefit where you live. Our staff is not authorized to provide tax advice.
Locating Your 1099-RSep 22, 2022, 4:05 PM By MOSERS
How do I get a copy of my 2021 1099?
You can find a replacement copy of your 1099-R form by logging into myMOSERS. Select Personal Information and from there you will find it available for you to download and print.
Understanding the Substitute W-4P FormJun 6, 2022, 11:28 AM By MOSERS
Regarding information needed for retirement process, where or how do I obtain the "withholding amounts from benefit for federal and Missouri state taxes", is this from a check stub for when taxes are filed each year
Each person’s situation may be different, and we cannot advise you on your tax liability as it pertains to your MOSERS pension. We suggest you contact the Missouri Department of Revenue and/or a qualified tax advisor about your tax liability and to determine your withholding amounts.
You will elect both your Missouri state and your federal tax withholdings on the Substitute W-4P form and submit it to MOSERS. The fastest, easiest way to submit it is by logging in to myMOSERS. You may also submit it to us via mail, email, or fax (see our Contact page for details). Please note that the amount of withholdings you elect does not change your tax liability.
Taxes & Penalties on PensionsApr 19, 2022, 10:41 AM By MOSERSIf I take early retirement next year (2023), at age 57, with 15 years of service, will I be penalized with taxes for taking my pension?
Your MOSERS benefit is subject to normal federal taxes. It is also subject to normal Missouri state income taxes if you are a resident of Missouri. However, if you are a Missouri resident, you may qualify for the Public Pension Exemption.
Visit the Missouri Department of Revenue's Public Pension Exemption page or read our Missouri Public Pension Exemption flyer for more information.
IRS Tax Penalties: Taking your MOSERS defined benefit (DB) pension at age 57 does not subject it to IRS tax penalties. However, taxes and/or penalties related to other distributions include:
- There may be a 10% IRS tax penalty if you are younger than age 59 ½ at the time of payment, elect BackDROP*, and take a lump-sum cash payment. If you terminate employment in or after the year you reach age 55, this penalty will not apply. Additionally, MOSERS is required to withhold 20% of a BackDROP cash payment for federal taxes. More details are available in the Special Tax Notice brochure on our website. In such a situation, you can avoid the IRS tax penalty by rolling over the BackDROP payment to a qualified retirement account such as with MO Deferred Comp and not withdrawing it until you meet all IRS regulations (generally speaking, that is after you attain age 59 1/2 but there are exceptions, see page 4 of the Special Tax Notice brochure (BackDROP and Refunds), including one for public safety employees).
- If you have made pre-tax contributions to the MO Deferred Comp plan (an internal revenue code section 457(b) plan), distributions from that plan following retirement or termination of service at any age are subject to ordinary income tax only.
- Employer “match” contributions made on behalf of an employee to a 401(a) plan are subject to an additional 10% penalty if withdrawn prior to age 59 1/2.
Be sure to check with your financial institution or a tax advisor for information about your tax liability when you begin withdrawing your funds.
*BackDROP is available only to general state employees who are members of MSEP & MSEP 2000 and who work at least two years beyond normal retirement eligibility.
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We strive to provide the most accurate information possible in our answers to Rumor Central questions. However, occasionally, laws, policies or provisions change and individual circumstances may vary. Please contact a MOSERS benefit counselor or see the handbooks in our website Library for more detailed information. If there is any difference between the information provided in this blog or on the MOSERS website and the law or policies that govern MOSERS, the law and policies will prevail. See our Privacy, Security & Legal Notices for more information.