TCE Colorado PERA 1984-86 Special Handling

Under the SilGro home page for Alan Silverstein and Cathie Grow
Last update: January 26, 2016 -- Email me at ajs@frii.com

The following applies to clients who made PERA (Public Employees' Retirement Association) contributions 1984-86, related to Colorado Form 104 line 13 ("PERA/DPSRS Subtraction, for PERA contributions made in 1984-1986 or DPSRS contributions made in 1986").

The Form 1099-R might have no information on what to put on line 13 (see CO 104 instructions); nor does the Colorado FYI Income 25 document. Logging into a PERA account finds a menu item under "Account Information" labeled "1984-1986 Contributions".

Individual accounts show total contributions for those years, possible a significant amount of money that can be subtracted one time (if the pension is big enough) or can be carried over until it's used up. It means that PERA retirees can get a bigger pension exclusion for one year.

The entire amount calculated by PERA can be taken in one year if the client's pension income for that year is at least as much as the deduction, which should be true for most people. If not, carry over the balance to the next year being careful to retain documentation on past deductions. See also the worksheet in FYI Income 16.

This has nothing to do with the adjusted amount on the 1099-R for pension income upon which federal tax was paid for a few years. That's something completely different.

Taxpayers could conceivably request that PERA send them the amount, but finding it on the website is quick and easy. Fortunately if they don't take it for TY2014, they can still do it next year. Check to see whether they've already taken it in a prior year.