HOW TO ANSWER 1099R QUESTIONS

[mcashin52]

I received a 1099R for monthly distributions to me from my pension. When I am asked the question "What did you do with the money frim the Northern Trust?", Is that asking what did I do with the monthly distribution money or is it asking what I did with my pension when I retired?

[AnnetteB6 · Accepted solution]

It is asking what you did with the monthly distributions (if that is the Form 1099-R that you are entering).  Most likely you 'did something else with it'.  The main reason it asks is to determine whether the distribution was rolled into another retirement account or IRA.

[jtax]

It is asking about the monthly distributions (though it doesn't care if they are monthly, annual, semi-annual, or every other day, just the total for the year, which should be shown on the 1099-R in box 1).

TT needs to ask its questions to determine the taxable amount of your pension/IRA distributions.

1. if you put the money into another IRA it might not be taxable. that's a rollover. 
2. if you did not take your required minimum distribution you might owe a penalty.

In the normal course of things for a retired person, neither will apply, but TT has to ask to be sure. they don't usually apply because the safer way to transfer custodians (e.g. move from Fidelity to Vanguard) is to have them do a direct rollover. Then the money never comes to you and you don't get a 1099-R for the rollover. Secondly, you RMD is probably automatically calculated and distributed monthly.

[jghiller]

not sure