An annuity unpaid at death is any annuity payments which were due a railroad retirement annuitant and, for any reason, were not paid before the annuitant died. This includes any check which was returned to the RRB because the annuitant died before cashing it. An annuity unpaid at death is taxable for Federal income tax purposes. For further information concerning the taxability of an annuity unpaid at death, refer to the booklet TB-85 Information About the Taxation of Railroad Annuities.
There are two types of unpaid annuities.
- A retirement annuity unpaid at the death of the retirement annuitant; and
- a survivor annuity unpaid at the death of a survivor annuitant.
The application for either type of unpaid annuity must be filed by the second anniversary of the annuitant's death to whom the annuity was originally payable.