If you took a distribution from your IRA or pension plan, you'll get Form 1099-R. This form, along with additional info you provide, will determine what portion, if any, of your distribution is taxable.
These boxes on the 1099-R play key roles in determining taxability:
- Box 2a lists the taxable portion of your distribution, but this can change once you give us more info
- Box 2b can also help determine the taxable amount
- If the Total distribution box is checked, we'll see if you qualify for any special elections that may lower your tax
- If the Taxable amount not determined box is checked, it means the payer didn’t know the taxable amount of your distribution
- Box 7 provides important codes that identify the specific type of distribution you received and whether you owe a 10% early distribution penalty or qualify for an exception
There are several different retirement plans, each with their own rules on taxing withdrawn income. On plans like Traditional IRAs and employer pensions, income tax was deferred when you contributed, which means that you’ll now pay tax on the distributions. With plans like Roth IRAs, however, income was already taxed during contribution, and so isn’t taxed now
Just enter the information as it appears on your 1099-R form. We'll use it and your answers to a series of questions to determine the taxable amount of your distribution.
Click here for more information regarding the taxability of your pension distribution.
Click here for information on how your retirement withdrawal affects your taxes.
We can help you enter your 1099-R.
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