received a 1099R from a class action law suite, where do I enter it on my tax form?

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April 10, 2026
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I received a 1099 R from a class action law suite, where do I input it on my tax return?

TurboTax Online

AmyC

Level 15

Follow these steps:

Open your return and go to Federal > Wages & Income.
Scroll down to Retirement Plans and Social Security.
Click Start (or Revisit) next to IRA, 401(k), Pension Plan Withdrawals (1099-R).
Answer Yes to "Did you receive a 1099-R?"
Select "I'll type it in myself" and enter the details exactly as they appear on your form.
Box 2a
1. If Box 2a (Taxable Amount) is $0: The settlement is likely not taxable (perhaps it was a return of after-tax contributions).
2. If Box 2a has an amount: TurboTax will include this in your taxable income.
3. If "Taxable amount not determined" is checked: TurboTax will ask you follow-up questions.
Box 7 (Distribution Code). This code tells the IRS why you got the money and if it's taxable.
- Code 1 or 7: Usually indicates a normal or early distribution.
- Code G: Often used if the settlement was rolled over directly into another retirement account (this usually makes it non-taxable).
- Code 2: May indicate an exception to the early withdrawal penalty.

If you believe the settlement shouldn't be taxable (e.g., it was for physical injury but the lawyer mistakenly issued a 1099-R), look for the "Uncommon Situations" screen within the 1099-R section to see if an exception applies.

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