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Level 1

Should I report monthly pension received monthly that were deposited into a traditional IRA account under income 1099R and IRA contributions?

I receive a monthly pension and deposited it into my traditional IRA.  When I enter the 1099 R into Turbo Tax and answer the question - did some or all funds go into traditional IRA I said yes and entered the $6,500 deposited to my IRA.  When I get to the section regarding IRA contributions,  I completed the questions indicating I made a $6,500 contribution. Am I taking double credit for the $6,500?  My taxable pension is less than the total pension I received and makes sense.  Forms are so much different than prev years,  I am not sure if what I did was correct.

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Accepted Solutions
Level 20

Should I report monthly pension received monthly that were deposited into a traditional IRA account under income 1099R and IRA contributions?

Pensions are not eligible for rollover or contributions to an IRA.

For 2015, 2016, 2017 and 2018, your total contributions to all of your traditional and Roth IRAs cannot be more than:

  -  $5,500 ($6,500 if you’re age 50 or older), or
  - your taxable compensation for the year, if your compensation was less than this dollar limit.

     (Taxable compensation is generally wages that you worked for - W-2 or net self-employed income minus the deducible part of the SE tax, but can include commissions, alimony and separate maintenance, and nontaxable combat pay ).  

Unless you have as least as much taxable compensation as the contribution, the contribution would be an excess contribution, subject to a 6% penalty that repeats each year until removed.

If it is an excess contribution then you should tell the IRA custodian and have them return the excess as a "return of contribution", not as a Norma distribution.



2 Replies
Level 20

Should I report monthly pension received monthly that were deposited into a traditional IRA account under income 1099R and IRA contributions?

No that is all wrong.  And you can’t contribute to a IRA from your pension.  Do you have any earned income from working in 2018?  And you can not roll over your pension to a IRA.  You need expert help.  @dmertz  
Level 20

Should I report monthly pension received monthly that were deposited into a traditional IRA account under income 1099R and IRA contributions?

Pensions are not eligible for rollover or contributions to an IRA.

For 2015, 2016, 2017 and 2018, your total contributions to all of your traditional and Roth IRAs cannot be more than:

  -  $5,500 ($6,500 if you’re age 50 or older), or
  - your taxable compensation for the year, if your compensation was less than this dollar limit.

     (Taxable compensation is generally wages that you worked for - W-2 or net self-employed income minus the deducible part of the SE tax, but can include commissions, alimony and separate maintenance, and nontaxable combat pay ).  

Unless you have as least as much taxable compensation as the contribution, the contribution would be an excess contribution, subject to a 6% penalty that repeats each year until removed.

If it is an excess contribution then you should tell the IRA custodian and have them return the excess as a "return of contribution", not as a Norma distribution.