1099-R

[brookseven]

My wife received a 1099-R as a beneficiary of what we believe is a Roth IRA. Box 7 shows distribution code 4 and box 11 shows Roth Contrib. but there is no date. First of all was this taxable and what should we enter in box 11? We paid both federal and state taxes on this distribution and if it is not taxable, what do we need to do to get if refunded?

[dmertz · Accepted solution]

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.

[brookseven]

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