1099R and Tax Information
TRS mails 1099R tax forms at the end of every January.
The tax statement contains confidential information and can only be mailed to the address of the member that is currently on record with TRS. For your privacy and protection, the member, beneficiary or power of attorney must submit a written request to TRS in order to send the 1099R form to an address that is different from the one currently on record with TRS. The written request may be mailed to TRS or faxed to 502-573-0254. This special request will not change your permanent address record, unless you specifically request that it be changed.
This form may be found on the Retired Member forms page.
To request a duplicate for a lost 1099R form, please call 800-618-1687. The TRS call center staff will verify your correct name and address for mailing the duplicate form and for the permanent record file.
Tax Aspects of Pensions
Kentucky state tax laws
The majority of our members do not owe Kentucky state taxes on TRS benefits. TRS strongly recommends you seek the advice of a qualified tax preparer for any specific questions concerning Kentucky income taxes on your pension. You may want to take a printout of this page to your tax preparer.
The good news is that Kentucky law excludes up to $31,110 in pension income from state tax (a change from $41,110 before 2018). Don’t forget to apply the Kentucky pension income exclusion against the amount taxable by the state.
The TRS newsletter in January typically provides a more detailed explanation of how to make sure you benefit from the pension income tax exemption. Watch for it in your mailbox or you may download it from the Publications and Newsletters page.
Tax forms may be obtained through the Kentucky Department of Revenue. Make sure to look for Schedule M (adjusted gross income modifications) and Schedule P (pension income exclusion).Also, the following telephone numbers can provide more information.
TRS: 502-848-8500, 800-618-1687
KERS: 502-696-8800, 800-928-4646
Deferred Compensation: 502-573-7925, 800-542-2667
Kentucky Revenue Cabinet: 502-564-4581
Upon retirement you must report your federal taxable income to the IRS. Under federal tax law, members must pay taxes on their tax-sheltered annuities immediately. If you made contributions prior to August 1982 or made personal payments to the retirement system, TRS will calculate the amount of your contributions upon which you already have paid federal income tax and will report on the 1099R the amount of your annuity that is still subject to income tax.
When you retire, you must complete a Form W-4P instructing TRS how to withhold federal taxes from your annuity. If you elect to withhold, TRS will withhold federal taxes on the taxable portion of your annuity as calculated using IRS guidelines.