turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Ask the Experts All About the W-4! >> Event happening NOW!!!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Filling manual 1099-R

I have a foreign retirement account, and I did a full cash surrender and took full distribution.

How do I report this as a 1099-R , as the company does not issue one?

I know the Gains (after converting to USD).

Is the box 2, taxable account  equals Total contribution(box1)? What will be the distribution code?

I assume the its long term capital gains tax and not ordinary tax based on my tax bracket

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

5 Replies
Vanessa A
Expert Alumni

Filling manual 1099-R

Yes, box 2 would equal total distribution

Distribution code would be 1, Early Distribution

 

No.  It is not Long Term Capital Gains Tax, it is ordinary income and will be subject to the 10% early retirement penalty. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Filling manual 1099-R

@Vanessa A Thanks will enter as Code 1 and shows as 10% flat penalty. So essentially fill Box1=Box 2a and leave other fields blank. Does PA personal  income  tax get impacted with this distribution? 

DawnC
Expert Alumni

Filling manual 1099-R

TurboTax will automatically include the income on your resident state return.   Commonly recognized retirement benefits are not taxable for Pennsylvania purposes if you retired and met the requirements for retirement under your employer’s plan.   Income from a retirement annuity not sponsored by an employer or not part of an employer’s plan is not considered retirement income.  The taxable amount reported for federal income tax purposes is reportable as interest for this type of annuity.   See PA Tax FAQs

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Filling manual 1099-R

Thanks, Are we saying that its Ordinary tax (roughly 21% bracket) and additional 10% penalty?

So for $6000 its impact is rougly 31% tax or $1860 of more taxes?

Asking as I would rather wait for 7 years for retirement and then use that. please suggest

JotikaT2
Employee Tax Expert

Filling manual 1099-R

Yes, your understanding is correct.  Generally, the 10% additional tax applies to retirement distributions made before you reach 59 1/2 years old.

 

But since you mention that your retirement is from a foreign country, there could be a treaty in place that might also affect the general rule.  The IRS has provided information here to assist depending upon the type of retirement income received.

 

In general, if you cannot find an exception to the 10% additional tax, it would be better to wait to avoid this tax.  However, in this situation, it sounds like you have already made the distribution.  At this point, you cannot go back and change your mind unless you're able to roll over the funds within 60 days to another eligible retirement plan.

 

IRS Topic 413, Rollovers from retirement plans

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies