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Notice of Annuity Adjustment and 1099 R Tax Forms

Posted on Saturday, 11th January 2020 by

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In late December of each year federal retirees receive a Notice of Annuity Adjustment that provides abundant information for annuitants and their survivors. Any time your annuity payment is modified, for whatever reasons, OPM sends out a new notice outlining the change and the impact on your annuity. If a COLA is pending, health care premiums change, or your long-term insurance premium increases you will receive a Notice of Annuity Adjustment.

Request a Federal Retirement Report™ today to review your projected annuity payments, income verses expenses, FEGLI, and TSP projections.

This document provides annuity and benefit information for you and your family. It includes the annuitant’s Claim number, the amount withheld for each item deducted from your annuity payment, and your gross and net payment. This document specifies the monthly survivor annuity currently payable in the event of the annuitant’s death and includes an annual Notice of Survivor Annuity Election Rights. You will also find OPM contact information and they include a recommendation to register and log on to their online services.

This form provides instructions on how to make benefit elections such as how to apply for a survivor election for a spouse you marry after retirement, survivor annuity elections for a former spouse, and others.

I elected a full survivor’s annuity for my wife when I retired as a CSRS employee. My wife will receive 55% of my full annuity when I die. The full FERS survivor’s annuity is 50%. I divided the surviving spousal monthly annuity listed on this document by my gross monthly benefit; my wife will receive 60% of what I was receiving while alive. When I elected a full annuity, my annuity was reduced by 10%. What many don’t realize is that the surviving spouse of a CSRS retiree receives 55% of the unreduced annuity amount or in my case 60% of what I was receiving monthly while alive. Many believe the surviving spouse receives 55% of what the federal annuitant was receiving prior to death. This is good information to have when finalizing your estate plans.

I keep the Notice of Annuity Adjustments that I receive in my retirement folder and include a copy in our estate binder along with OPM’s annuity and FEGLI insurance verification forms that OPM sends out upon request. This is an important document and needs to be readily available if you or your survivor need to contact OPM or require benefit clarifications.

I receive many questions each year from retirees and survivors that misplaced their CSA retirement Claim Number and need to contact OPM. If you file this form in your retirement planning or estate file this information will be readily available when needed.

1099 Tax Forms Coming Soon

Federal annuitants typically don’t receive their 1099R Tax Forms until the end of January or the beginning of February by regular mail. If you are registered to use OPM’s Retirement Services Website your 1099 R is often available by mid-January for download. I generally download a copy of my 1099 R to start my tax return early.

To get a head start on your taxes visit OPM’s web site and download a copy. You must be registered to use the site. If you aren’t registered read the article titled “Connect to OPM’s Online Services” to understand the registration process and sign up. It doesn’t take long however you may have to wait for your password to be sent via regular US mail and that can take several weeks. If you haven’t signed up yet do it now. The site offers retired federal employees many helpful options such as changing your direct deposit information, address changes, 1099 R copies, download annuity and insurance verification documents, and much more.

Scheduling A Retirement Benefits Seminar

Federal Employee Benefits Advocates (FEBA) provides comprehensive benefit briefings for Federal employees so they can make informed retirement decisions. Briefings include information on CSRS or FERS Retirement Annuities and all insurance programs including Medicare, the Thrift Savings Plan (TSP), Social Security, disability and other relevant retirement planning topics.

Schedule A Seminar in Your Area

Federal Employee Benefits Advocates (FEBA) provides comprehensive benefit briefings for Federal employees so they can make informed retirement decisions. Briefings include information on CSRS or FERS Retirement Annuities and all insurance programs including Medicare, the Thrift Savings Plan (TSP), Social Security, disability and other relevant retirement planning topics.

Helpful Retirement Planning Tools / Resources

Request a Federal Retirement Report™ today to review your projected annuity payments, income verses expenses, FEGLI, and TSP projections.

Disclaimer:Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The author recommends that retirees, potential and existing investors conduct thorough investment and benefit research of their own, including detailed review of OPM guidance for benefit issues and for investments the companies’ SEC filings, and consult a qualified investment adviser. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.

Last 5 posts by Dennis Damp

Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS, SURVIVOR INFORMATION | Comments (7)


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7 Responses to “Notice of Annuity Adjustment and 1099 R Tax Forms”

  1. celeste smith Says:
    January 13th, 2020 at 11:50 am

    There was a statements that 2019 1099’S are ready that you downloaded one to use for your 2018 taxes. We all need the 2019 to file with our 2019 not 2018 taxes.

  2. Dennis Damp Says:
    January 14th, 2020 at 9:12 am

    2019 1099R forms will be sent out by OPM by the end of January. If you are registered with OPM’s Online Services you will be able to download your 1099 R form early, typically around the 16th to 18th of the month of January.

  3. Elizabeth S Gruhler Says:
    January 17th, 2020 at 11:54 am

    Elizabeth S. Gruhler – income tax preparation concern.
    I am waiting for my Notice of Annuity Adjustment to come in the mail. I will need it to do my tax return. I usually had it by this time in other years. Thank you.

  4. Jean Wylie Says:
    January 17th, 2020 at 8:03 pm

    You stated 1099R is available NOW. IT IS NOT. I printed what was available and almost submitted taxes with last years numbers. Try harder.

  5. Dennis Damp Says:
    January 18th, 2020 at 7:08 am

    Sorry about the confusion. The artilce states that 1099 Tax Forms are Coming Soon and that “If you are registered to use OPM’s Retirement Services Website your 1099 R is often available by mid-January for download. I generally download a copy of my 1099 R to start my tax return early.” I state it is often available in mid January. I send out a notice the day they are released, and this year they are later than ususal. They will be out soon and you can expect a followup article to annouce their availability that day. I will add a statemnt to next year’s announcement stating that registered users should sign in and check to see if their 1099 R is ready for donwload. Sorry again for the confusion.

  6. Dennis Damp Says:
    January 18th, 2020 at 7:10 am

    Elizabeth, if it doesn’t arrive soon contact OPM at 1-888-767-6738 and ask them to send a replacement.

  7. Dennis Damp Says:
    January 18th, 2020 at 7:20 am

    The artilce states that you can typically download the current year 1099 from OPM Serivces Online in Mid Janaury. I didn’t mention the year. OPM Services Online generally has the current year 1099 R forms available around mid Janaury. They are late this year, I’ll sent out an annoucnement the day they are released.

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