Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

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

cancel
Showing results for 
Search instead for 
Did you mean: 
The_Saguaro
Level 1

Form 1099-R and Roth IRAs

In 2020 my wife closed out her IRAs with Equity Trust.

 

One account had silver coins and the other was stock. We received the 1099-R forms. On the one that was the silver coins, boxes 1 (Gross Distribution) and 2a (Taxable Amount) are filled in and of equal amounts. Box 2b (Taxable Amount Not Determined) is checked. Finally box 7 is filled in with a "7" and the IRA/SEP/Simple box is checked there.

 

On the other account's 1099-R, box 1 is filled in but box 2a is blank. Both checkboxes in 2b are checked. Box 7 is filled in with a "T".  Other than taxes withheld, no other boxes are filled in.

 

So, what do I do with these 1099-Rs? Are both Gross Distributions completely taxable? I filled in Turbotax 2020 with all the information on those forms. We lost money on the stocks but made money on the silver coins. Why is box 2b filled in on one 1099-R but not the other?

 

This is the first time I have had to deal with IRAs, etc. Any insights/explanations would be appreciated!

 

Regards.

 

Peter

 

1 Best answer

Accepted Solutions
macuser_22
Level 15

Form 1099-R and Roth IRAs


@The_Saguaro wrote:

So do I just treat these as ordinary income?


No.  You enter the 1099-R's.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

 

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

View solution in original post

4 Replies
macuser_22
Level 15

Form 1099-R and Roth IRAs


@The_Saguaro wrote:

In 2020 my wife closed out her IRAs with Equity Trust.

 

One account had silver coins and the other was stock. We received the 1099-R forms. On the one that was the silver coins, boxes 1 (Gross Distribution) and 2a (Taxable Amount) are filled in and of equal amounts. Box 2b (Taxable Amount Not Determined) is checked. Finally box 7 is filled in with a "7" and the IRA/SEP/Simple box is checked there.

 

On the other account's 1099-R, box 1 is filled in but box 2a is blank. Both checkboxes in 2b are checked. Box 7 is filled in with a "T".  Other than taxes withheld, no other boxes are filled in.

 

So, what do I do with these 1099-Rs? Are both Gross Distributions completely taxable? I filled in Turbotax 2020 with all the information on those forms. We lost money on the stocks but made money on the silver coins. Why is box 2b filled in on one 1099-R but not the other?

 

This is the first time I have had to deal with IRAs, etc. Any insights/explanations would be appreciated!

 


The 1st 1099-R is correct for a Traditional IRA.

 

The 2nd 1099-R, if the IRA/SEP/SIMPLE box is not checked then it is not a Traditional IRA.   What it is is determined by the box 7 code - If a T then that would indicate a Roth IRA.  That seems to be correct also.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
The_Saguaro
Level 1

Form 1099-R and Roth IRAs

So do I just treat these as ordinary income?

macuser_22
Level 15

Form 1099-R and Roth IRAs


@The_Saguaro wrote:

So do I just treat these as ordinary income?


No.  You enter the 1099-R's.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

 

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
The_Saguaro
Level 1

Form 1099-R and Roth IRAs

Thanks for the detailed response. Will follow your guidance!

Have a good 2021!

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.62m
Discussions

Manage cookies
v