 So you should receive a form 1099R showing the total amount of your pensions and annuity payments before income tax or other deductions were withheld. These amounts should be shown in box 1, a form 1099R. Pension and annuity payments include distributions from 401K, 403B and government 457 plans. In other words, these are similar to the IRAs except that instead of us creating an IRA, we used our employers typically to invest under these retirement type plans, the typical forms being a 401K that would typically used for non-corporate entities, right? I mean non-government entities, normal businesses. The 403B possibly could be used for non-profits and government as well as the 557B. So the general idea of all of these is somewhat similar, the government trying to incentivize us to save for retirement by manipulating our behavior through the use of incentives on the tax code. Same concept as we saw with the IRA, the general concept being during working years, we put money into these plans and why do we do that? Because we get a tax benefit typically when we put the money into the plans. And then at retirement time, we take the money out of the plans. We're currently looking at income. That means we're taking the money out of the plan because that's usually when we might have a triggering type of event. But to understand the rationale, we have to understand us putting money into the plan and why it's resulting in a taxable event when we're taking the money out of the plan. When we put money into the plan, if we get a tax benefit, that's why we put the money in, meaning some of the income might not be subject to tax at the point in time that we put the money in, but rather is deferred and then will be taxed at the point in time that we take the money out, hopefully in a qualified distribution at the retirement age. Noting and remembering, these plans are not special types of investment tools. A 401k plan, for example, isn't some really special kind of vehicle you're used to invest. You're probably investing in mutual funds or ETFs that are under the umbrella of a 401k plan. What does the 401k plan do? In effect, it restricts you from taking your own money out of the plan or else you'll be hit with a penalty to take the money out unless you have a rationale for doing so. You wouldn't do that normally. You would just put money into stocks and bonds, not under the umbrella, unless you're incentivized to do so because you get a tax benefit. So that's the whole idea we get a tax benefit when we put the money in, when we take the money out, we have to pay the taxes. That's the general concept. Okay, so then we have rollovers and lump sum distributions are explained later. So note, if I take the money out before retirement, then I might be subject to not only taxes but a penalty, which could be hefty. Therefore, you want to not do that when you go from one job to another. You would like to rollover if you need to the 401k plan or 403B in such a way that it will not be shown as a distribution on the tax form, but rather as a rollover. Okay, so don't include the following payments on lines 5A and 5B instead report them on line 1H. So disability pensions received before you reach the minimum retirement age set by your employer, corrective distributions including any earnings of excess elective deferrals or other excess contributions to retirement plans. The plan must advise you of the year, years the distributions are includeable in income. All right, fully taxable pensions and annuities. Your payments are fully taxable. So meaning they're going to be included in income, increasing the taxable income subject to the tax. So A, you didn't contribute to the cost. C, cost later of your pension or annuity or B, you got your entire cost back tax free before 2023. But C, insurance premiums for retired public safety officers later, if your pension or annuity is fully taxable, enter the total pension or annuity payment payments from forms 1099R box 1 on line 5B. Don't make an entry on line 5A.