Are retirement benefits taxed?
In most cases, yes. You will need to complete a W-4P when you retire and can submit changes on the Member Portal, on your pay advice form or by mailing us a new W-4P.
Where can I get help filing my taxes?
Several groups offer free tax preparation assistance to people who meet their qualifications. Read more about two of these programs.
Volunteer Income Tax Assistance (VITA)
VITA offers free income tax preparation for low to moderate income individuals and families. Click the links below to locate resources near you:
AARP's Tax-Aide Foundation
Tax-Aide offers free tax preparation for low to moderate income taxpayers, with a focus on those who are 50 and older.
What is a 1099-R? What do I do with it?
This type of tax form includes information about the distribution of retirement benefits, such as pensions.
This can be distribution of monthly pension payments, an actuarial lump sum distribution, or a DROP payment. If an employee stops working for the city and receives a refund of their contributions with interest, this will also be reported on a 1099-R.
You will use this information when completing your income tax return.
It's possible to receive more than one 1099-R form; use all 1099-R forms that you receive when you are completing your taxes.
This example from an earlier year shows what type of information is included on the form:
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I haven't received my 1099-R. What should I do?
Your 1099-R will be placed in the mail by February 1. It can take 7-10 business days after that date to receive your form. If you haven't received it by mid-February, give us a call at 817-632-8900.
1099-Rs are mailed from our bank (which is in Chicago) to the mailing address on file for the Retirement Fund member. Please be sure to keep your mailing address up to date to prevent delay of receiving your 1099-R.
If you have moved, complete a Change of Address form at our "Forms" page. Even if you have already filled out a form at the post office, you still need to also fill out a form for the Fund; they are separate steps.
What is a W-4P? Do I need to fill one out?
The W-4P form is used to specify the amount you wish to have withheld from your pension payments for tax purposes. (The "P" in the document name stands for "pension.")
If you are still actively working and receiving a paycheck rather than a pension, you would fill out a W-4.
The presentation below gives more detailed information about tax withholding and the W-4P and W-4 forms. Click the "full-screen" symbol to view the presentation more easily.
How can I change the income tax withholding on my monthly retirement pension?
When you retired, you completed a In order to change the amount of tax you have withheld in retirement, you will need to complete a new W-4P.
Changes can be made in the Member Portal, on your pay advise form, or by mailing us a new W-4P tax withholding form.
The completed form must be received in our office by the tenth of the month in order to take effect the first of the following month. See the Question above for more details on the W-4P.
