Tag Archives: Taxes

1099-R Tax Forms Available Online

Tax season is here. If you received a distribution of retirement benefits from NYSLRS last year and need to report it as income on your taxes, you don’t have to wait for the mail—1099-R tax forms are available online.

While NYSLRS pensions are not subject to New York State or local income tax, most are subject to federal income tax.

Beneficiaries who received a death benefit and members who took a taxable loan or withdrew their contributions may also be subject to federal income tax.

If NYSLRS is required to report your distribution to the Internal Revenue Service (IRS), we provide a 1099-R tax form to you for filing your taxes.

We distribute 1099-R tax forms annually based on your delivery preference:

Mail: We mail printed 1099-Rs by January 31. (Note: The default delivery preference is mail.)
Email: We make 1099-Rs available in Retirement Online sooner than printed copies are mailed—we will notify you by email in mid-January. (Note: You will not receive a printed 1099-R in the mail.)

Use Retirement Online to Get Your 1099-R

To view, save or print your 1099-R:

Sign in to Retirement Online.
Look under My Account Summary.
Click Manage My 1099-R Tax Forms button.
Select an option from Year dropdown. (Note: 2025, 2024 and 2023 are currently available online.)
Click Generate button.

If you have one 1099-R, the document will open in a new browser tab. If you have more than one 1099-R, the documents will compile into a zip file and download on to your computer. Go to your Downloads folder and double-click on the zip file to access the documents.

Please check your browser settings and disable pop-up blockers to ensure your 1099-R can be generated. By default, your browser may block pop-ups, which may prevent a new tab from opening or the file from downloading.

If you don’t have an account or for help signing in to an existing account, check out our Retirement Online Tools and Tips , for step-by-step instructions to register, reset your password, unlock your account and more.

Understanding Your 1099-R

Your tax form includes:

The total amount (before taxes and deductions) paid to you for the year indicated on the form.
The taxable portion of your benefit.
The amount of federal income tax withheld for the year indicated on the form and paid to the IRS on your behalf.

For more information, check out our interactive 1099-R guide. It walks you through a sample and offers a short explanation of each box on the form.

Get an Email Notification When 1099-R Tax Forms Are Available Online

You can get your 1099-R online sooner than printed copies are mailed. Update your delivery preference to email and when your 1099-R is available, we’ll send an email notifying you to sign in to Retirement Online.

Sign in to Retirement Online.
Look under My Profile Information.
Click update next to ‘1099-R Tax Form Delivery by.’
Choose Email from dropdown.

Be sure the email address listed in your Retirement Online account is current.

Note: If you choose email as your delivery preference, you will not receive a printed copy in the mail.

Taxes and Your NYSLRS Loan

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If you’re thinking about borrowing against your retirement contributions, it’s important to understand whether your NYSLRS loan will be subject to taxes before you apply. Once you submit a loan application and we issue a check, you cannot return an uncashed check, and the loan fee is nonrefundable.

Determining the Taxability of Your NYSLRS Loan

When you apply for a NYSLRS loan, all your existing NYSLRS loans and any loans against other retirement plans will be used in calculating the taxability of a new NYSLRS loan. If you participate in another retirement plan offered through your employer, you must disclose existing loans and the contribution balances for the following types of plans:

Deferred compensation plan (457)
Tax sheltered annuity plan (403-b)
Qualified annuity plan (403-a)
Qualified trust (401)

If You Have Existing NYSLRS Loans

If you have one or more NYSLRS loans and are considering another loan, you’ll have two options:

Multiple loans. With multiple loans, you would take out a new loan in addition to your existing loan(s). Each loan would have separate 5-year terms and minimum payments. The minimum payments for all your loans would be combined into one total repayment amount, which would be higher than the minimum payment for a refinanced loan. However, your total minimum payment would decrease as you pay off each loan.
Refinance your existing loan. With refinancing, your new loan would be consolidated with the balance of your existing loan(s) into a single loan for the entire amount. The total loan amount would be spread over a new 5-year term with one minimum payment, which would be lower than the total minimum payment for multiple loans. However, refinancing would increase how much of your loan is considered a taxable distribution, which would either subject the loan to federal taxes or significantly reduce the amount of the loan to avoid any tax implications.

Understanding the Impact on Your Taxes

While a NYSLRS loan is exempt from New York State and local income taxes, it may be subject to federal taxes. If your loan exceeds certain limits, the Internal Revenue Service (IRS) will consider all or part of it as a “deemed distribution from a qualified retirement plan.” In other words, you will have to claim all or part of your loan as taxable income when you file your taxes the next year.

NYSLRS is also required to withhold a percentage of the loan for federal taxes, which will reduce the amount you receive. The tax withholding depends on your citizenship, so the loan application asks if you are a U.S. citizen, resident alien or non-resident alien. However, the amount withheld may not cover the total amount you will owe the IRS. For example, if you take a taxable loan before you turn 59½, the IRS may charge an additional 10 percent tax penalty.

If you take a taxable loan, we’ll mail a 1099-R by January 31 of the following year to file with your taxes.

Remember: Even if a portion of your loan goes to the IRS, you’ll still have to repay the entire amount, plus interest, to NYSLRS.

We recommend that you speak to a tax advisor or a NYSLRS customer service representative before taking a taxable loan. For more information about taking a loan from NYSLRS, visit our Loans: Applying and Repaying page.

Ready to Apply for a NYSLRS Loan?

Retirement Online is the fastest and most convenient way to apply for a NYSLRS loan. When you use Retirement Online, NYSLRS receives your application immediately and can process your loan more quickly. Retirement Online will also let you know how much you can borrow, your repayment options and whether your loan is taxable.

If you don’t have an account or for help signing in to an existing account, check out our Retirement Online tools and tips for step-by-step instructions to register, reset your password, unlock your account and more.

10 Things Retirees Should Know

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NYSLRS is one of the largest retirement systems in the world, administering benefits for more than 1.2 million members, retirees and beneficiaries. Take a look inside NYSLRS and brush up on your NYSLRS knowledge—here are 10 things retirees should know.

Not retired yet? Check out 10 Things Members Should Know.

1. Retirement Online is the Fastest, Most Convenient Way to Do Business With NYSLRS

Retirement Online is the fastest way to manage your NYSLRS account. Skip printing forms, having them notarized and sending them through the mail. When you submit your requests through Retirement Online, NYSLRS has them immediately, and your changes will be completed more quickly. It’s convenient and secure. Check out what retirees can do in Retirement Online.

2. Your Pension Benefits Are Secure

The New York State Common Retirement Fund holds and invests the assets of NYSLRS on behalf of members, retirees and their beneficiaries and continues to be one of the best-funded and best-managed public pension funds in the nation. Comptroller Thomas P. DiNapoli is the administrator of NYSLRS and trustee of the Common Retirement Fund.

3. It’s Important to Keep Your Contact Information Up to Date

Wherever retirement takes you, it’s important to keep NYSLRS informed of any changes to your contact information. That way, you’ll be sure to receive the tax information, news, correspondence and statements we send you. If you receive correspondence and statements by mail, it’s vital you review the address we have on file for you. Changing your address with the United States Postal Service (USPS) does not mean your records will automatically be updated with NYSLRS. To ensure you continue receiving mail from NYSLRS, you must submit a change of address directly to us. This is especially important if you receive your pension payment as a paper check.

4. ‘Go Green’ and Get Your Important Documents Sooner

You can help us ‘go green’ and reduce paper waste by choosing email as your delivery preference for correspondence and other important documents, such as your 1099-R tax form and Retiree Annual Statement. When you have something to view, we’ll send an email notifying you to sign in to Retirement Online. And it will save time—you’ll get access to your important documents sooner than printed copies are mailed. Learn how to get email notifications for important documents.

5. There May Be an Earnings Limit for Working After Retirement

As a NYSLRS retiree, you can work and still receive your pension. However, there may be a limit on how much you can earn each year without affecting your NYSLRS pension. An earnings limit of $35,000 generally applies to NYSLRS retirees who are under age 65 and returning to work for a public employer while receiving a service retirement benefit. However, the earnings limit for retirees employed by school districts or Boards of Cooperative Educational Services (BOCES) is suspended through June 30, 2027.

6. You Should Review Your Beneficiaries Periodically

Most NYSLRS retirement plans provide a post-retirement death benefit for beneficiaries of eligible retirees who die after retiring directly from service or within one year of leaving public employment. It’s a good idea to review your beneficiaries from time to time to make sure they reflect your current wishes. The beneficiary you named before might not be the one you would choose today. You should also review the contact information for your named beneficiaries so we can find them when needed and share this information about reporting a retiree’s death to NYSLRS with your survivors.

7. Adjust Your Tax Withholding Online

Most NYSLRS pensions are subject to federal income tax. If your last federal tax bill or return was not what you expected, Retirement Online is the fastest way to update your federal tax withholding. Changes submitted by the middle of the month will generally be applied to that month’s payment.

8. View Your Pay Stubs for Insight Into Your Monthly Pension Payments

Your pension pay stub gives you valuable insight into your monthly pension payment, including a breakdown of credits and deductions for health insurance, union dues, tax withholding or disbursements under a domestic relations order. Throughout the year, you can access your pay stubs online and see year-to-date totals.

9. Update Your Direct Deposit Information Online if Changing Banks or Accounts

Changing financial institutions or accounts will affect whether you receive your monthly pension payment. It’s important to update your direct deposit information with NYSLRS as soon as possible—and you can update your information quickly and conveniently with Retirement Online. Changes submitted online will generally be applied to your next month’s pension payment. Not using direct deposit yet? Don’t wait to receive a check in the mail—direct deposit is fast, convenient and secure. Sign up for direct deposit now and get your money sooner.

10. Generate a Pension Income Verification Letter Quickly and Easily Online

You may need proof of your retirement income for housing or as part of an application for the Home Energy Assistance Program (HEAP). With Retirement Online, you can quickly and easily generate a pension income verification letter any time you need one.

Federal Tax Withholding and Your Pension

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Most NYSLRS pensions are subject to federal income tax. If your last federal tax bill or return was not what you expected, Retirement Online makes it fast and convenient to update your federal tax withholding.

federal tax withholding and your pension

Understanding Your Federal Tax Withholding

NYSLRS is required to withhold federal income tax from your pension benefit at the default withholding status of “single with no adjustments” unless you inform us otherwise. The amount withheld is based on the information you provide to us on a W-4P Form (Withholding Certificate for Pension or Annuity Payments).

Note: The Internal Revenue Service (IRS) revised its W-4P Form, which no longer allows tax filers to adjust their withholding by electing a specific number of allowances. To comply with IRS requirements, NYSLRS updated its tax withholding form accordingly. You do not need to submit a new W-4P Form to NYSLRS unless you want to change the amount withheld for federal income tax.

Effective January 1, 2023, NYSLRS does not withhold federal income tax from pension benefits that are not subject to tax reporting.

Estimate Your Federal Tax Withholding

The IRS has a new Tax Withholding Estimator which may help you estimate the federal income tax you want withheld from your pension. When using the tool, be sure to have your most recent tax return, pension pay stubs (available in Retirement Online) and other income information—your results will be based on the information you enter.

Use Retirement Online to Update Your Withholding

Retirement Online is the fastest and most convenient way to complete the W-4P Form and update your federal tax withholding for your NYSLRS pension.

Sign in to Retirement Online.
Look under My Account Summary.
Click Update My W-4P Tax Information button.
Follow steps to update your withholding.

If you update your federal tax withholding online by the middle of the month, your changes will generally be applied to that month’s pension payment.

For more information, including instructions for updating your withholding, visit our Taxes and Your Pension page.

If You Need Help

The NYSLRS form is based on the IRS form. If you need assistance completing the form:

Read the IRS Form W-4P for detailed instructions starting on page 2.
Visit the IRS About Form W-4P page for more information.
Visit the IRS Let Us Help You page for the IRS phone numbers and a list of online tools and resources.

If you’re not sure whether you need to adjust your federal tax withholding or if you have other tax questions, you may want to consult a tax preparer.

NYSLRS Retirees Contribute to New York State’s Economy

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NYSLRS benefits provide a lifetime monthly pension retirees can count on. And, in turn, NYSLRS retirees contribute to our local economies in both good times and bad.

Nearly 79 percent of NYSLRS retirees live right here in New York State, and they can be found in every region and county. That means, in every corner of the Empire State, NYSLRS retirees are there—patronizing local businesses and helping to create jobs. Retirees also pay a significant share of State, local and property taxes.

As of the State fiscal year ending, March 31, 2024, Suffolk County on Long Island is home to 39,837 retirees and beneficiaries—the most benefit recipients of the counties outside of New York City. They make up about 2.6 percent of the county’s residents, and they bring some $1.5 billion in pension payments to their region’s economy.

On the other hand, Hamilton County has the fewest NYSLRS benefit recipients—just 545. But, for this sparsely populated county in the heart of the Adirondacks, those retirees represent about 10 percent of the county’s population, and they inject more than $12.9 million of pension payments into their communities.

As the number of NYSLRS retirees in our State grows, you can count on their help in building a stronger New York for years to come. Visit our website to see more about how retirees contribute to every region in the State.

Retirees Contribute to New York State’s Economy

How Retirees Contribute to Economic Stability

A NYSLRS pension is a defined benefit plan, which provides guaranteed monthly pension payments to retirees for life. With a defined benefit plan, your pension will be calculated based on a preset formula. That means—unlike with 401(k)-style defined contribution plans, which are essentially retirement savings accounts—your contributions won’t affect the amount you receive in retirement. NYSLRS retirees don’t have to worry about their pension running out during retirement, and there’s no danger of a drop in monthly income based on the whims of the stock market.

A study by the National Institute on Retirement Security (NIRS) suggests retirees with steady sources of income such as Social Security and monthly pensions are better able to maintain their spending during economic downturns, which may play a stabilizing role in local economies. That stability is particularly important in rural parts of the State. These areas often lack the economic diversity of more densely populated regions, which can make them more susceptible to downturns.

Defined benefit pension plans don’t just help New York State. Across the nation, pension benefits support millions of retirees who in turn contribute to their communities. In 2020, defined benefit pension plans paid $612.6 billion to 24.6 million retired Americans. According to the same NIRS study, their spending supported 6.8 million jobs and generated $1.3 trillion in economic activity.

New York Retirement News

News from the New York State and Local Retirement System