Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Income — Retirement Income Workout

Taxable Pensions and Annuities

Case Study 1: Fully Taxable Pensions and Annuities

Sue worked for a software development company for 20 years. She retired and began receiving pension income the same year. She never contributed to the pension plan while she was working; her employer made all of the contributions. Her pension is fully taxable.

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Sue.
Pub 4491, Retirement Income Lesson

Pub 4491, Retirement Income Lesson