Yes, a Lump Sum Distribution is reported on form 1099-R. You receive Form 1099-R when you receive a distribution of more than $10. A Lump Sum Distribution means that all of the money from this one account was distributed in a single payment. It is asking if this income is claimed on your federal return. Basically, did you enter the form 1099-R on the Federal tax return.
For more details, click on this link; What is a Lump Sum Distributions
Here's where to enter your 1099-R in TurboTax:
- Open or continue your return.
- In the Federal section, select Wages & Income.
- Scroll to locate Retirement Plans and Social Security.
- Select Start or Revisit next to IRA, 401(k), Pension Plan Withdrawals (1099-R).
TurboTax will ask questions along the way that will determine the tax treatment of the Lumb Sum Distribution so answer questions carefully.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"