Yes, that could
be correct, especially if your distribution code in Box 7 is shown as a “U”.
You will enter the Form 1099-R as you would any other Form
1099-R. The distribution code in
box 7 will determine how it is handled on your tax return. The taxable amount will be reported on
line 16b of form 1040, but it will not be subject to an early distribution
penalty.
To go to the section in TurboTax to enter the information
from your Form 1099-R, use these steps:
- On the
top row of the TurboTax online screen, click on Search (or for
CD/downloaded TurboTax locate the search box in the upper right corner)
- This
opens a box where you can type in “1099-R” (be sure to enter
exactly as shown here) and click the magnifying glass (or for
CD/downloaded TurboTax, click Find)
- The
search results will give you an option to “Jump to 1099-R”
- Click
on the blue “Jump to 1099-R” link
