It depends. In viewing Publication 575, I do not see an exception for a pension maturing or any wording to that effect. The exceptions I see are:
General exceptions.
- The tax doesn’t apply to distributions that are:
- Made as part of a series of substantially equal periodic payments (made at least annually) for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary (if from a qualified retirement plan, the payments must begin after separation from service) (see Substantially equal periodic payments, later);
- Made because you are totally and permanently disabled
- Made to you because you have received a certification that you are terminally ill; or
- Made on or after the death of the plan participant or contract holder
There are other exceptions listed in this publication that relate to qualified retirement plans but the exceptions I just listed apply to all retirement plans.
If you are entering manually, you would enter $3000 in Box 1 and $800 in Box 2. Box 3 is blank because it is not the net income taxable but represents a capital gain to be reported on your return. LEAVE THIS BLANK. The program automatically determines your ordinary gain with the information recorded in Box 1 and 2A.
@valleybuy
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