calculators
Member Education
forms and publications
news
about etf
frequently asked questions
contact etf
site map
related links
home
top of page
home
members retirees employers governing boards careers at etf
 
FAQ

Frequently Asked Questions

Revised January 9, 2019

Retiree Tax Information

1099-R

  1. When will I receive IRS form 1099-R from ETF?
  2. Why did I receive multiple 1099-R forms from ETF?
  3. What does the distribution code on form 1099-R mean?
  4. Will I receive form 1099-R for a direct rollover?
  5. What if I haven’t received my 1099-R form from ETF?
  6. I misplaced my 1099-R, can I get a duplicate copy?
  7. The form 1099-R I received has three statements on one sheet of paper. What should I do with them?
  8. Why is there a difference between my gross distribution (Box 1) and the taxable amount (Box 2a) on my 1099-R?
  9. What is the amount in Box 5 (Employee contributions)?
  10. What is the amount reflected in Box 9b on my 1099-R?
  11. I rolled over my distribution. Do I still have to report the amount even though the rollover is not taxable during the current year?
  12. The 1099-R that I received is incorrect. How do I get it corrected?
  13. I received a 1099-R for a deceased relative. Why did I get it, and what do I do with it?

 

1042-S

  1. Why did I receive IRS form 1042-S from ETF?
  2. When will I receive IRS form 1042-S from ETF?
  3. What if I haven’t received my 1042-S form from ETF?
  4. I misplaced my 1042-S, can I get a duplicate copy?
  5. The 1042-S form that I received is incorrect. How do I get it corrected?

 

W-2

  1. Why did I receive IRS form W-2 from ETF?
  2. I have questions about the amount of wellness incentive reflected on the W-2 I received from ETF. Who do I contact?
  3. When is a wellness incentive payment reported for tax purposes?
  4. When will I receive IRS form W-2 from ETF?
  5. What if I haven’t received my W-2 form from ETF?
  6. I misplaced my W-2, can I get a duplicate copy?
  7. The W-2 form that I received is incorrect. How do I get it corrected?

 

1095

  1. What is the federal Patient Protection and Affordable Care Act (ACA)?
  2. I have insurance through the State of Wisconsin Group Health Insurance Program.  What form will I receive?
  3. I have dependents who are covered on my insurance plan.  Will they each receive a Form 1095-B from my insurance provider?
  4. What should I do with my IRS Form 1095-B?
  5. When will I receive my IRS Form 1095-B?
  6. What if I haven’t received my IRS Form 1095-B?
  7. Will I receive an IRS form 1095-C if I am an active employee or receiving insurance under COBRA?
  8. The form that I received from my insurance provider  is incorrect. How do I get it corrected?
  9. If I am enrolled in Medicare, will ETF send me a form?
  10. Does the State of Wisconsin Group Health Insurance Program coverage meet the federal definition of “minimum essential coverage”?
  11. Where can I go to read more about the Affordable Care Act?

1099-R

  1. When will I receive IRS form 1099-R from ETF?
    The IRS deadline for mailing Form 1099-R is January 31, however ETF generally mails this form by the  third week in January. Please visit the ETF website at etf.wi.gov for periodic updates.

  2. Why did I receive multiple 1099-R forms from ETF?
    Each distribution code requires a separate form 1099-R. If you received more than one distribution type, you will receive more than one 1099-R.

    For example, if you turned age 59½ during the calendar year, you would receive one 1099-R reporting any distributions taken before age 59½ (distribution code 2) and another 1099-R reporting distributions taken after age 59½ (distribution code 7).

    If you received long-term disability insurance benefits in 2018, you may also receive two 1099-Rs, one from Aetna for January 2018 and one from ETF for the remainder of the year.



  3. What does the distribution code on form 1099-R mean?
    The distribution code identifies the type of distribution you received. For code descriptions, please refer to the 1099-R instructions on the back of your 1099-R form. If you need an additional explanation, please contact ETF, the IRS or your professional tax advisor.

    Distribution Code

    Explanation

    1

    • Early distribution, no known exception.
    • The individual had not attained age 59½ at the time of distribution.
    • The distribution is subject to an additional 10% penalty tax unless the individual meets an exception to the penalty or had completed a qualified rollover.

    2

    • Early distribution with an exception applied under Internal Revenue Code (IRC) 72(q),(t) or (v), such as:
      • A distribution from a qualified retirement plan after separation from service in or after the year the participant has reached age 55.
      • A distribution from a governmental defined benefit plan to a public safety employee (as defined in 72(t)(10)(B)) after separation from service in or after the year the employee has reached age 50.
      • A distribution that is part of a series of substantially equal periodic payments as described in section 72(q), (t), (u) or (v).
    • The individual is not subject to the additional 10% penalty.

    3

    • Disability.
    • The individual must be determined to be disabled under the definition of Internal Revenue Code (IRC) Section 72(m)(7):
      • IRC states “…an individual shall be considered to be disabled if he is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or to be of long-continued and indefinite duration. An individual shall not be considered to be disabled unless he furnishes proof of the existence thereof in such form and manner as the Secretary may require.”

    4

    • Death.
    • This code is used regardless of the age of the participant to indicate a distribution to a decedent’s beneficiary, including an estate or trust.

    7

    • Normal distribution,
    • The individual has attained age 59½ at the time of the distribution.

    A

    • May be eligible for 10-year tax option.
    • The individual, or his/her beneficiaries,was born before January 2, 1936. The distribution may be eligible for the 10-year tax option method of computing the tax on lump-sum distributions.

    G

    • Direct Rollover to an IRA, 403(b), 457 or another qualified plan.


  4. Will I receive form 1099-R for a direct rollover?
    Yes. ETF is required to report all distributions taken on form 1099-R, even those rolled to an IRA within the 60-day limit.

  5. What if I haven’t received my 1099-R form from ETF?
    We mailed your tax form to the address we have on record. If you moved, be sure to contact ETF with your new address.

    Please wait until mid-February to request a duplicate 1099-R to allow the United States Postal Service time to deliver the mail. If you haven’t received your 1099-R by mid-February, please contact ETF and we will send you a duplicate 1099-R to your address on file. Please allow at least one week for mail delivery.

  6. I misplaced my 1099-R, can I get a duplicate copy?
    You may request a duplicate by contacting ETF.  

  7. The form 1099-R I received has 3 statements on one sheet of paper. What should I do with them?
    • Copy B – To be used in preparing your federal income tax return. It should be detached and submitted with your tax return to the IRS if there is an amount in Box 4 (Income Taxes Withheld).
    • Copy C – For your records. Retain and keep in a safe place.
    • Copy 2 – To be used in preparing your state, city or local income tax return, when required.

  8. Why is there a difference between my gross distribution (Box 1) and the taxable amount (Box 2a) on my 1099-R?
    If Box 1 and Box 2a are different, one of two scenarios is applicable:
    • There is an amount reflected in Box 5 (Employee contributions), which is non-taxable.
    • The form represents the amount rolled over to a qualified retirement plan, and the distribution code in Box 7 is G.

  9. What is the amount in Box 5 (Employee contributions)?
    Box 5 reflects the portion of your benefit payment(s) that are non-taxable, referred to as your “Investment in Contract (IIC).” This amount represents the recovery of your after-tax employee contributions you made to the Wisconsin Retirement System while you were an employee. Those after-tax contributions are spread out during your lifetime resulting in your exclusion amount. The amount shown in Box 5 represents the annual portion of your retirement benefit disbursed to you that are tax-free. This amount is the difference between Box 1 (Gross distribution) and Box 2a (Taxable amount).

  10. What is the amount reflected in Box 9b on my 1099-R?
    Box 9b reflects the total amount of after-tax contributions you made to the WRS.

  11. I rolled over my distribution. Do I still have to report the amount even though the rollover is not taxable during the current year?
    Yes. Your 1099-R with distribution code G reflects the amount of your rollover. In most situations, your 1099-R will show $0.00 as the taxable amount in Box 2a, unless you rolled over your distribution to a Roth IRA. The amount you rolled over will not be subject to taxes until it is disbursed from your IRA/qualified plan.

    Rollovers to Roth IRAs are subject to income taxes in the year the rollover is made. Please refer to your professional tax advisor or the IRS if you have any questions on income tax liability for rollovers to a Roth IRA.

  12. The 1099-R that I received is incorrect. How do I get it corrected?
    Please contact ETF via phone, email or mail. Remember to provide your full name, Social Security number or member ID, address and phone number, along with the reason you believe there is a discrepancy. ETF will research the issue and provide you with a resolution as soon as possible.

  13. I received a 1099-R for a deceased relative. Why did I get it, and what do I do with it?
    If you received a 1099-R from ETF, it may be because you are the person who notified ETF of the death, or are the decedent’s representative. You will need the 1099-R tax document to complete the decedent’s last federal and/or state tax returns. If you are not that person, please send the form to the person who is preparing the tax returns.


1042-S

  1. Why did I receive IRS form 1042-S from ETF?
    If you are residing in a foreign country, you are not a United States citizen and you received disbursements from the Wisconsin Retirement System, you will receive IRS form 1042-S from ETF reflecting that income.

  2. When will I receive IRS form 1042-S from ETF?
    The IRS deadline for mailing Form 1042-S is March 15, however ETF generally mails this form by January 31. Please visit the ETF website for periodic updates.

  3. What if I haven’t received my 1042-S form from ETF?
    We mailed your tax form to the address we have on record. If you moved, be sure to contact ETF with your new address.

    Please wait until mid-March to request a duplicate 1042-S to allow the United States Postal Service time to deliver the mail. If you haven’t received your 1042-S by then, please contact ETF and we will send you a duplicate 1042-S to your address on file. Please allow at least one month for international mail delivery.

  4. I misplaced my 1042-S, can I get a duplicate copy?
    You may request a duplicate by contacting ETF.

  5. The 1042-S form that I received is incorrect. How do I get it corrected?
    Please contact ETF.  Remember to provide your full name, Social Security number or member ID, address and phone number, along with the reason you believe there is a discrepancy. ETF will research the issue and provide you with a resolution as soon as possible.


W-2

  1. Why did I receive IRS form W-2 from ETF?
    ETF issues IRS form W-2 to report wellness incentive disbursements.  If you enrolled under the State of Wisconsin Group Health Insurance Program or the local It’s Your Choice plans, and you and/or your dependents received a wellness incentive payment from your health insurance carrier, you will receive Internal Revenue Service (IRS) Form W-2 from ETF reporting the amount of the wellness incentive payment you received during the calendar year.  The IRS classifies these wellness incentives as fringe benefits that must be treated as taxable wages.

  2. I have questions about the amount of wellness incentive payments reflected on the W-2 I received from ETF. Who do I contact?
    You should contact Stay Well directly to confirm the payment dates and amounts for incentives issued to you and your enrolled dependents. Stay Well can assist with reissuing payments that were not received.
    Stay Well’s Helpline can be reached by phone at 1-800-821-6591 or by e-mail at wellwisconsin@staywell.com.


  3. When is a wellness incentive payment reported for tax purposes?
    For tax purposes, a wellness incentive payment is reported in the year the payment was issued to you by your health insurance carrier. Even though the activity you performed to qualify for a wellness incentive payment may have been in a previous year, for tax purposes the wellness incentive payment is in the year it was issued to you.


  4. When will I receive IRS form W-2 from ETF?
    The IRS deadline for mailing form W-2 is January 31, however ETF generally mails this form by the third week in January. Please visit the “What’s New” section on the ETF website for periodic updates.

  5. What if I haven’t received my W-2 form from ETF?
    We mailed your tax form to the address we have on record. If you moved, be sure to contact ETF with your new address.

    Please wait until mid-February to request a duplicate W-2 to allow the United States Postal Service time to deliver the mail. If you haven’t received your W-2 by then, please contact ETF and we will send you a duplicate W-2 to your address on file. Please allow at least one week for mail delivery.

  6. I misplaced my W-2, can I get a duplicate copy?
    You may request a duplicate by contacting ETF.

  7.  The W-2 form that I received is incorrect. How do I get it corrected?
    Please contact ETF. Remember to provide your full name, Social Security number or member ID, address and phone number, along with the reason you believe there is a discrepancy. ETF will research the issue and provide you with a resolution as soon as possible.


Form 1095

  1.  What is the federal Patient Protection and Affordable Care Act (ACA)?
    The Patient Protection and Affordable Care Act (ACA) is a federal law that, among other things, encourages large employers (generally 50+ employees) to offer medical insurance to certain qualified employees and their dependent children. Those employers and applicable health insurance plans must send an annual statement to all employees eligible for coverage describing the insurance available to them.

    The State of Wisconsin Group Health Insurance Program provides you with coverage that, according to the ACA, meets minimum essential coverage and meets minimum value, as defined by the ACA. The ACA encourages employers to offer care that is affordable, as defined by the ACA. If it is found not to be affordable by the IRS, your employer may be asked to pay a penalty to the federal government.

  2.  I have insurance through the State of Wisconsin Group Health Insurance Program.  What form will I receive?
    If you or your family members were covered through one of the carriers in the Wisconsin Group Health Insurance Program, that carrier will send you Form 1095-B with information about your coverage.

  3.  I have dependents who are covered on my insurance plan.  Will they each receive a Form 1095-B from my insurance carrier?
    No. Form 1095-B will only be sent to the subscriber of this health insurance.  The form includes a summary of all persons covered so you should provide a copy to any family members listed in Part IV for their records.

  4.  What should I do with my IRS form 1095-B?
    Keep this form with your tax documents.  You may need to submit information from it with your taxes.

  5.  When will I receive my IRS Form 1095-B?
    Your insurance carrier will be issuing your Form 1095-B.  The IRS deadline for mailing the 2018 Form 1095-B is March 4, 2019.

  6.  What if I haven’t received my IRS Form 1095-B?
    If you have not received your IRS Form 1095-B by mid-March, contact your insurance provider to request a duplicate.  Note that it is not necessary to have Form 1095-B in hand to file your income tax return if you know you had coverage throughout the year.

  7.  Will I receive an IRS Form 1095-C if I am an active employee or receiving insurance under COBRA?
    If you are an active employee, please contact your employer.  If you are receiving insurance through COBRA, please contact your former employer.  ETF does not issue IRS health insurance forms (1095-B or 1095-C) for active employees or former employees with COBRA coverage.

  8.  The form that I received from my insurance provider is incorrect.  How do I get it corrected?
    Please contact your insurance provider if your form is incorrect.  Remember to provide your full name, Social Security number or member ID, address and phone number along with the reason you believe there is a discrepancy.

  9.  If I am enrolled in Medicare, will I receive a Form 1095?
    If you were enrolled in Medicare for the entire year, your insurance provider will not be sending you a form.  Age 65 and older retirees who are on Medicare may receive instructions from Medicare on how to report their coverage. If you enrolled in Medicare mid-year, you may receive a form from your insurance provider reporting the coverage you had while you were not enrolled in Medicare.  For example, if you were enrolled in the IYC Access Plan and your Medicare Part A and Part B was effective on May 1, your provider will send you a form 1095-B reporting your coverage from January through April.

  10.  Does the State of Wisconsin Group Health Insurance Coverage meet the federal definition of “minimum essential coverage”?
    Yes.  The state offers a group health plan for employees and eligible annuitants that meets the federal definition of minimum essential coverage.  This is important because most individuals who do not have minimum essential coverage or an exemption for each month of the year will need to make a payment with their tax return.

  11.  Where can I go to read more about the ACA?
    Find more information on the federal website – www.HealthCare.gov.
supporting excellence in Wisconsin public service