I closed out an IRA acct to use the funds to live on. Does that count as a dividend? The form from the Credit Union states IRA/SEP/SIMPLE

The form I am looking at is 1099-R

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I closed out an IRA acct to use the funds to live on. Does that count as a dividend? The form from the Credit Union states IRA/SEP/SIMPLE

No, that is not a dividend, it is a retirement distribution.

The Form 1099-R must report the full amount of any distribution. How that distribution is treated will be determined by the code(s) in Box 7 and by how you enter the data into TurboTax.

The easiest way to get to the 1099-R entry screen is to simply search for 1099-R (upper- or lower-case, with or without the dash) in your TurboTax program and then click the "Jump to" link in the search results.

Then answer Yes, click Continue, and follow the on-screen instructions to either import or type in your 1099-R form.

Watch for a screen that asks What did you do with the money from [custodian's name]? On that screen, choose the appropriate option from the available choices. If you are younger than age 59 1/2, there will be a 10% additional tax on the withdrawal, unless you qualify for an exception. Withdrawing the funds to pay for living expenses, absent any other listed reasons, does not qualify for an exception to the penalty.

If taxes were withheld in Box 4, they will either be added to your refund or applied to your tax liability.

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I closed out an IRA acct to use the funds to live on. Does that count as a dividend? The form from the Credit Union states IRA/SEP/SIMPLE

No, that is not a dividend, it is a retirement distribution.

The Form 1099-R must report the full amount of any distribution. How that distribution is treated will be determined by the code(s) in Box 7 and by how you enter the data into TurboTax.

The easiest way to get to the 1099-R entry screen is to simply search for 1099-R (upper- or lower-case, with or without the dash) in your TurboTax program and then click the "Jump to" link in the search results.

Then answer Yes, click Continue, and follow the on-screen instructions to either import or type in your 1099-R form.

Watch for a screen that asks What did you do with the money from [custodian's name]? On that screen, choose the appropriate option from the available choices. If you are younger than age 59 1/2, there will be a 10% additional tax on the withdrawal, unless you qualify for an exception. Withdrawing the funds to pay for living expenses, absent any other listed reasons, does not qualify for an exception to the penalty.

If taxes were withheld in Box 4, they will either be added to your refund or applied to your tax liability.

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