Tax reform, how does this impact a retiree benefit?
The tax reform bill that was recently passed appears to change some federal income tax brackets (the rates/percentage), including the income level ranges that fall within the brackets. Pensions continue to be considered taxable income at the federal level (unless you had any after-tax contributions, those will be shown in box 5 on the 1099R), so we suggest you discuss if the federal tax changes will affect you with your tax professional.
Changes (if any) to the amount of your KCPSRS benefit payment will be implemented beginning with your February payment (issued on February 28, 2018).
To the best of our knowledge, state taxation of Missouri public pensions won’t be affected by this bill.
You should have received your 1099-R tax form with information you will need to file your tax returns for 2017. If you find you need a replacement copy of your 1099R, call us at 816-472-5800 or email kcpsrs@kcpsrs.org
If you decide you want to change either your state or federal tax deductions from your monthly pension benefit, you may do so at any time. Simply submit a new tax withholding form available on the Important Forms for Retirees page of our website for you to print and mail in.
