2025 Medicare Part B Premium Reimbursement - 12.18.2024 - 2024 IRS Form 1099-R

Sep 19, 2026

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Memo dated December 18, 2024 from the Manager, Pension Plans, provides pensioners with mailed information about 2025 Medicare Part B premium reimbursement and the 2024 IRS Form 1099-R. It explains when the 1099-R will be distributed before January 31, 2025, how normal and disability pension payments are treated as ordinary income, and how amounts and withholding are shown on specific form boxes. It also notes potential disability tax credits, automatic federal withholding rules, and a California-only box 14 state-withholding requirement, plus cautions that the bulletin is not tax advice.

LanguageEnglish

CategoryLetters

FormatPDF

Pages5

Reading Time2 min

AccessFree to download

1099-R mailing timeline and distribution

Normal and disability pension reporting

Federal withholding rules and elections

Medicare Part B premium reimbursement treatment

California residents state withholding note

December 18, 2024 TO: ILWU Longshore, Ship Clerk and Walking Boss/Foreman Locals FROM: Jacquie Gasparro, Manager, Pension Plans SUBJECT: INFORMATION FOR PENSIONERS 􀂃 2025 Medicare Part B Premium Reimbursement 􀂃 2024 IRS Form 1099-R Attached is information which will be mailed to the homes of all pensioners in December 2024. The 2024 1099-R tax forms will be mailed to the homes of all pensioners before January 31, 2025. Attachments. cc: Area Welfare Directors A copy of this memo can be downloaded [at](at www.benefitplans.org)[ ](at www.benefitplans.org)[www.benefitplans.org](at www.benefitplans.org). JG:ld/opeiu29, afl-cio/MTP_Ship Clerk, Walking Boss & Foreman Locals/2025 Medicare Reimbursement & 2024 IRS Form 1099-R (Memo)– 12.18.2024 December 2024 TO: THIS MAILING CONTAINS INFORMATION FOR PENSIONERS, SURVIVING SPOUSES AND ALTERNATE PAYEES UNDER THE ILWU-PMA PENSION PLAN OR THE ILWU-PMA WATCHMEN PENSION PLAN AND PENSIONERS AND BENEFICIARIES RECEIVING MEDICARE PART B REIMBURSEMENT UNDER THE ILWU-PMA WELFARE PLAN. 1099-R FORM: Your tax Form 1099-R reflecting the total amount of pension payments issued in 2024 and the amount of federal income tax withheld, if any, will be distributed in a separate mailing before January 31, 2025. Watchmen pensioners who receive benefit payments either from Lincoln National Life Insurance Company or Allstate Life Insurance Company will receive tax Form 1099-R from the insurance company for payments issued in 2024. The information provided below regarding normal and disability pensions is applicable to Lincoln National and Allstate payments. NORMAL AND DISABILITY PENSIONS: These payments are considered ordinary income for tax purposes by the IRS. Your Form 1099-R will show the total amount of pension payments issued in 2024 in Box 1 and the taxable amount of such payments in Box 2a. The amount of federal income tax withheld, if any, is shown in Box 4. Box 7 shows an IRS code which identifies the type of pension (distribution) you received. Recipients will be required to attach Form 1099-R to their returns if Federal income tax withholding is shown in Box 4 . A sample of a blank Form 1099-R appears on the reverse side of this page for your reference. Under IRS regulations some disability pensioners may be entitled to claim a tax credit on account of disability. Individual tax advisers or the IRS can assist disability pensioners in determining whether or not they are entitled to such credit. ******************************* Federal income taxes are automatically withheld from Pension Plan payments in required amounts unless pensioners elect otherwise. Pensioners who receive their pension payments outside the United States may not elect exemption from withholding. Withholding election forms are available at the Localsand can be requested from the Benefit Plans Office or can be downloaded at [www.benefitplans.org](www.benefitplans.org. Elections may be made and)[. Elections may be made and](www.benefitplans.org. Elections may be made and) revoked as often as desired. Penalties may be incurred under federal tax rules if sufficient tax is not withheld from pension payments and payments of estimated tax are not adequate. (over) ******************************* CALIFORNIA RESIDENTS ONLY: The amount of State income tax withheld, if any, is shown in Box 14 of Form 1099-R. Recipients will be required to attach Form 1099-R to their returns if California income tax withholding is shown in Box 14. ******************************* INFORMATION OFTEN REQUESTED BY TAX ADVISERS, LAWYERS, AND THE IRS MEDICARE PART B PREMIUM REIMBURSEMENTS: The Benefit Plans Office has been advised that under IRS regulations Medicare Part B premium reimbursements are not subject to income tax. Therefore, the amount reimbursed by the Benefit Plans Office for Medicare Part B premiums is not included on Form 1099-R. All Pension Plan benefits are employer contributed, with no contribution b

FAQs

When will pensioners receive the 2024 IRS Form 1099-R?

The 2024 1099-R tax forms will be mailed to pensioners before January 31, 2025.

How does the memo describe the tax treatment of normal and disability pension payments?

The payments are considered ordinary income for tax purposes, and the form shows total pension payments and the taxable amount in the specified boxes.

Are Medicare Part B premium reimbursements included on Form 1099-R?

No. The memo states Medicare Part B premium reimbursements are not subject to income tax and the reimbursed amount is not included on Form 1099-R.

Sep 19, 2026

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