dmertz
Level 15

Retirement tax questions

If box 7 has code 4 and no other code, this is not a distribution from any kind of Roth account.  If the IRA/SEP/SIMPLE box is marked, the distribution is from a traditional IRA and is generally fully taxable.  If the IRA/SEP/SIMPLE box is not marked, the code-4 distribution is from a traditional account in an employer plan and is taxable to the extent shown in box 2a.

 

The Form 1099-R is required to be entered as received.  Whatever amount is shown in box 4 will be credited on your tax return against your overall tax liability determined on your tax return.  The amount withheld for taxes on this distribution, usually 10%, is probably insufficient to cover the increase in your tax liability resulting from this distribution, so entering this Form 1099-R is likely to decrease your refund or increase your balance due.

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