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Category: 1099's

1099-R: How do I Enter Distributions from Pensions, Annuities, or Other Retirement Plans

Form 1099-R is generally used to report income that you received from a retirement account. This income could have been from a pension, an annuity, a retirement or profit-sharing plan, an IRA, or an insurance contract.

Even if there is a taxable amount entered in Box 2 of your 1099-R, you may qualify to use the Simplified Method to reduce the amount that is taxed. If you are not sure if you qualify to use the Simplified Method to determine your taxable amount, Click here.

If the taxable amount is NOT determined you will check Box 2b; however that does not mean that you will not be taxed on the distribution. In this circumstance it is the taxpayer's responsibility to determine the amount to be taxed. If your annuity starting date was before July 1, 1986 you will use the General Rule to figure the taxable part of the distribution if it was not rolled over within 60 days. If your annuity starting date was after July 1, 1986 you may be required to use the Simplified Method Worksheet. This worksheet is available on our 1099-R screen within our program. Please refer to the Simplified Method Worksheet link below for further instructions.

For a total distribution you will also make a notation on the form. A total distribution is one or more distributions within 1 tax year in which the entire balance of the account is distributed. If periodic (or installment) payments are made, mark the box in the year the final payment is made.

 

How do I enter this form in my account?

From the Federal Section >Income Menu> Enter Myself > IRA/Pension Distributions.

If you have questions about the Distribution Code that is entered in Box 7 of your 1099-R, Click here.

For additional information: What is Form 1099-R and how to report Box 2A

What do the codes for Box 7 mean?

Information on the Early Withdrawal Penalty

Who Can Take the Retirement Savings Contribution Credit?

1099-R Simplified Method Worksheet