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Scenario 5

Scenario 5

Zaria

  • Born in 1959, as a retired state police trooper.
  • She is receiving:
    • public retirement and pension benefits of $50,000, and
    • a private IRA (private retirement and pension benefits) of $40,000.
       
Step 1 - Complete "Which Section of Form 4884 Should I Complete"

She answers the questionnaire in Form 4884 instructions as follows:

  • Question 1 –  Yes
  • Question 2 – Yes, as she has not reached the age of 67, she is instructed to complete Section A of Form 4884.
 

 

Step 2 - Complete Form 4884, Part 3

Zaria proceeds with completing Form 4884.

She enters her information on lines 1 through 4, skipping line 5 as she is filing single. She checks box 6a but skips box 6b.

She did not receive pension benefits from a deceased spouse, so she skips Part 2.

In Part 3, she fills out a separate line for each retirement and pension benefit distribution, checking the box for “Public” under 8A for her public retirement and pension benefits and checking the box for “Private” under 8A for her private retirement and pension benefits.

 
Step 3 - Complete Form 4884, Section A

Zaria completes Section A of Form 4884 as follows:

  • Line 9 – Enter $61,518 as she is filing single.
  • Line 10 – Leave blank as it does not apply to her.
  • Line 11 – Enters $61,518 after subtracting line 10 from line 9.
  • Line 12 – Enters $50,000, her total public retirement and pension benefits.
  • Line 13 – Enters $11,518 after subtracting line 12 from line 11.
  • Line 14 – Enters $40,000, her total private retirement and pension benefits.
  • Line 15 – Enters $21,518, the smaller of lines 13 or 14.
  • Line 16 – Enters $61,518 after adding lines 12 and 15.
Step 4 - Carry to Schedule 1

Zaria carries the amount from Form 4884, line 16 to Schedule 1, line 27.