DianeW777
Employee Tax Expert

Retirement tax questions

A code 3, in box 7 of form 1099-R indicates a disability distribution and then puts the income with other wages on your Form 1040.  It also indicates that a penalty is not required and that you are under retirement age.  The code is the reason the questions are not coming up.

 

The income must be reported however, if you have wages you may be able to make a contribution to your IRA for 2022 in the amount you replaced in the plan (this assumes it's an IRA). 

 

You may be able to have Fidelity reissue a corrected 1099-R with only the amount you actually kept in 2022.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"