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Level 1
posted Jan 24, 2024 8:30:04 AM

How to report less than 10 dollars distribution from Trad IRA? no 1099-R issued

I made a $7 withdrawal/distribution from a Traditional IRA last year. The bank did not issue a 1099-R because the amount was under $10, an IRS rule I didn't know about before. How do I report the distribution on TurboTax without a 1099-R to enter? Do I make one up? Or is there somewhere else I should enter the tiny income?

 

I have a 1099-R issued by the same bank for a larger Roth distribution last year, and the Trad IRA 1099 would have been coded "7 - normal distribution", so FWIW I think I could make up a 1099-R for the Trad IRA accurately. OTOH, making up forms doesn't seem like a good idea.

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1 Best answer
Expert Alumni
Jan 24, 2024 8:42:20 AM

Yes, you would "make up the form".  The IRS will know when you report less than $10 and they don't have a "copy" of a 1099-R for you that you are properly reporting your $7 and you do not have a form.  "Making up the form" is the only way to report it properly in the proper section. 

2 Replies
Expert Alumni
Jan 24, 2024 8:42:20 AM

Yes, you would "make up the form".  The IRS will know when you report less than $10 and they don't have a "copy" of a 1099-R for you that you are properly reporting your $7 and you do not have a form.  "Making up the form" is the only way to report it properly in the proper section. 

Level 15
Jan 24, 2024 8:45:43 AM

With no tax withholding, the only effect of entering a made-up form 1099-R is to cause the income to appear on Form 1040 line 4a/b.  The form itself would not be included in your e-filing because it shows no tax withholding.