1099 R

[Summedj123]

I received 4 1099 R's: one for my retirement pension distribution, one for a recharacterization of my IRA - from Roth IRA to Traditional IRA (code N), one for early distribution from my Roth IRA (code J), and another for early distribution - withdrawn from my Traditional IRA and converted into my Roth IRA (code 2). This one also includes a taxable amount in box 2a - the same amount as is in box 1: gross distribution.

My question is: Why do I have to include all of these as income on my tax return? The only one I have received money/distribution is the first one - my retirement pension. It seems like I am being penalized - like this is showing as additional income, when I haven't taken any distributions yet. And why would I have a taxable amount on the last one?

[dmertz]

All of these are considered to be income, meaning that all must be reported.  However, as you pointed out, some report nontaxable income.  Only taxable amounts appear on Form 1040 line 4b or 5b affecting the rest of your tax return.

The code-2 Form 1099-R is required to be reflected on Form 8606 Part I (if the traditional IRA contribution resulting from the recharacterization is nondeductible) and Part II.

The code-J Form 1099-R is required to be reflected on Form 8606 Part III.

An explanation statement is required for the code-N Form 1099-R.

I assume that your retirement pension distribution is the one that is taxable and must appear on Form 1040 line 5b.

[Summedj123]

Thank you very much. This is very helpful. Yes, my retirement pension is taxable. It helps to know that the non-taxable amounts won’t impact me negatively. Thanks again!