NancyG
New Member

Retirement tax questions

A liquidating distribution is a "return of capital."  A return of capital is accounted for by reducing your basis in the security on your own records.  

As long as you continue to have positive basis there is no need to "report" anything; there's nothing to enter in TurboTax and there's no "proving" to the IRS that liquidating distributions/returns of capital haven't exceeded your basis.