How to determine RMD on deceased parent's Govt/OPM annuity payments for tax filing?

My dad passed away last September and I'm now stuck trying to figure out his taxes. He was getting both an annuity and a survivor's annuity from the Federal Government/OPM. No other retirement accounts or investments to deal with. The tax person I'm using keeps asking about required minimum distributions for these accounts. Looking at his 1099Rs, they both have "unknown" listed in box 2a. I'm pretty sure he retired sometime after November 1996 (like 98% certain). Does anyone know if these Government/OPM annuities even have RMDs? And if they do, how the heck do I figure out what amount I should be reporting? I've been going in circles on the IRS and OPM websites for days and still can't find a clear answer. Thanks in advance for any help! This whole executor thing is way more complicated than I expected...

0 coins

18 comments

Paolo Longo

•8M

Government annuities like those from OPM typically don't have Required Minimum Distributions (RMDs) in the traditional sense that IRAs or 401(k)s do. These are defined benefit pensions that pay out based on a formula, not account balances that need to be drawn down. The "unknown" in box 2a of the 1099-R usually indicates that the payer doesn't know what portion of the distribution is taxable. This is common with government pensions where the recipient may have made after-tax contributions during their working years. You'll need to determine if your father had contributed to his pension with after-tax dollars. If he did, a portion of each payment would be a tax-free return of those contributions. The taxable amount depends on whether he chose the Simplified Method or the General Rule when he started receiving benefits.

0 coins

Paolo Longo

•8M

Federal pension payments are indeed regular payments based on a formula using years of service and salary history, not withdrawals from an account balance. You can confidently tell your tax preparer that OPM annuities don't have RMDs because they're not account-based retirement plans like IRAs. Looking at his previous tax returns would be the best way to determine which method he used. Check Form 1040 and any attached forms like Schedule R or tax worksheets. You'll see either the Simplified Method or General Rule calculations. Most federal retirees use the Simplified Method unless they retired before 1997, which doesn't sound like your father's case.

0 coins

Amina Bah

•8M

I went through something similar with my mom's federal pension last year. The tax forms were so confusing until I found taxr.ai (https://taxr.ai). It's designed to analyze tax documents and explain what they actually mean, especially for complicated situations like government pensions. I uploaded her 1099-Rs and it immediately identified that her OPM annuity didn't have RMDs and showed exactly how to handle the "unknown" in box 2a. It even generated a letter I could give to the tax preparer explaining the pension treatment. Seriously saved me hours of stress during an already difficult time.

0 coins

Amina Bah

•8M

You upload the tax documents (like 1099-Rs, W-2s, etc.) and it scans them, identifies the important fields, and explains what each one means for your tax situation. It's especially helpful with government forms that have unusual entries like "unknown" in certain boxes. It does calculate the taxable portion based on the pension details. The site uses bank-level encryption and doesn't store your documents after analysis - I did a lot of research about this before uploading anything. It's not meant to replace a tax advisor completely, but it gives you the knowledge to have an informed conversation with them. My tax preparer was actually impressed with how accurately it broke down the pension taxation rules.

0 coins

CosmicCowboy

•8M

I was skeptical about taxr.ai at first, but after spending hours on hold with OPM trying to get answers about my father's pension and RMDs, I decided to give it a try. Honestly, I'm glad I did. The system analyzed my dad's 1099-Rs and immediately explained that OPM annuities don't have RMDs like traditional retirement accounts. It walked me through exactly how to determine the taxable portion using the Simplified Method worksheet and even identified which of his past payments were partially tax-free returns of his contributions. The most helpful part was the customized explanation letter I was able to give my tax preparer, who had been incorrectly treating the annuity like a 401(k). Saved me from potentially overpaying taxes and definitely saved hours of frustration.

0 coins

Natasha Orlova

•8M

If you need specific information from OPM about your father's annuity contributions or payment details, good luck getting through to anyone there. I spent TWO WEEKS trying to reach someone at OPM after my aunt passed away. Finally discovered Claimyr (https://claimyr.com) and watched their demo (https://youtu.be/_kiP6q8DX5c). They actually got me connected to a live OPM representative in about 20 minutes instead of endless hold times. The rep was able to provide the exact contribution information we needed for tax purposes and even sent documentation showing whether an RMD was required (it wasn't). Their system basically holds your place in line and calls you back when an actual human is available to talk. Completely changed my perspective on dealing with government agencies.

0 coins

Natasha Orlova

•8M

They don't jump ahead in line - they use technology to monitor the phone queue and automate the waiting process. Basically their system calls repeatedly using the right options, navigates the phone tree, and waits on hold for you. When a human finally answers, their system immediately connects that person to your phone. You don't have to listen to hold music for hours. I had the exact same reaction as you. I figured it was too good to be true but was desperate after so many failed attempts. I can only speak to my experience, but in my case, I got connected to an actual OPM benefits specialist who answered all my questions about my aunt's pension and the tax implications. The documentation they provided cleared up all confusion about whether RMDs applied to her annuity.

0 coins

Emma Thompson

•8M

I need to eat some humble pie here. After posting that skeptical reply yesterday, I decided to try Claimyr for my own situation with getting tax information from the IRS about my late father's pension. I've been trying for MONTHS to get specific documentation about his federal service years and pension contributions. Called the regular IRS/OPM numbers at least 15 times and never got through. Used Claimyr this morning and got connected to an actual human at OPM in about 35 minutes. The representative confirmed that my dad's government annuity didn't have RMDs and sent me documentation showing his contribution history, which is exactly what I needed for the tax calculations. I rarely admit when I'm wrong online, but... I was wrong. This actually works.

0 coins

Malik Jackson

•8M

Just wanted to add something important - if your father had a CSRS (Civil Service Retirement System) pension rather than FERS (Federal Employee Retirement System), the tax treatment is slightly different. CSRS employees contributed more of their own money to the pension. You can tell which system he was in by looking at his 1099-R - there's a code that indicates CSRS vs FERS. This matters because it affects how much of the pension payments are considered taxable vs. return of contributions.

0 coins

Malik Jackson

•8M

Look at Box 7 on the 1099-R, which shows the distribution code. For federal pensions, you'll typically see code "7" which means normal distribution. More importantly, examine the payer information at the top of the 1099-R. If it mentions "CSRS" specifically, that's your answer. If you still can't tell, another approach is to check if there's a Social Security benefit. FERS recipients typically receive Social Security benefits alongside their pension, while CSRS employees generally don't (unless they had other qualifying employment). So if your father received both an OPM pension AND Social Security, he was likely under FERS.

0 coins