August 14, 2018 19:33 Updated Follow Internal Revenue Service (IRS) publication 575 explains the rate of recovery for your tax basis. Related articles What is tax basis? How do I get federal taxes taken out of my pension? Will I be taxed twice if I choose to take a lump sum distribution of my INPRS account at retirement? How will it affect my taxes if I combine my annuity savings account with my pension at retirement and a portion is supposed to be non-taxable? If teachers get a pay increase, will teachers pensions funds increase in liabilities?