---

@The_Saguaro wrote:

In 2020 my wife closed out her IRAs with Equity Trust.

 

One account had silver coins and the other was stock. We received the 1099-R forms. On the one that was the silver coins, boxes 1 (Gross Distribution) and 2a (Taxable Amount) are filled in and of equal amounts. Box 2b (Taxable Amount Not Determined) is checked. Finally box 7 is filled in with a "7" and the IRA/SEP/Simple box is checked there.

 

On the other account's 1099-R, box 1 is filled in but box 2a is blank. Both checkboxes in 2b are checked. Box 7 is filled in with a "T".  Other than taxes withheld, no other boxes are filled in.

 

So, what do I do with these 1099-Rs? Are both Gross Distributions completely taxable? I filled in Turbotax 2020 with all the information on those forms. We lost money on the stocks but made money on the silver coins. Why is box 2b filled in on one 1099-R but not the other?

 

This is the first time I have had to deal with IRAs, etc. Any insights/explanations would be appreciated!

 

---

The 1st 1099-R is correct for a Traditional IRA.

The 2nd 1099-R, if the IRA/SEP/SIMPLE box is not checked then it is not a Traditional IRA.   What it is is determined by the box 7 code - If a T then that would indicate a Roth IRA.  That seems to be correct also.

So do I just treat these as ordinary income?

Thanks for the detailed response. Will follow your guidance!

Have a good 2021!