What's Form 1099-R?

Form 1099-R is for withdrawals (distributions) from 401(k) plans, IRAs, pensions, annuities, and other retirement plans. You get separate 1099-Rs for distributions from separate accounts. For example, you'd get one from your 401(k) and a separate one from your traditional IRA. 

There are a few variations:

If your plan administrator doesn't send you a Form 1099-R, you can file a substitute form 1099-R. Enter your 1099-R as you normally would in TurboTax, giving as much info about the payer as you can. We’ll see if you need to file ‌a substitute form.

How are retirement plans taxed?

In general, if contributions to a retirement plan aren’t tax deductible, like a Roth IRA or Roth 401(k), then qualified distributions (withdrawals, usually in retirement) aren’t taxed. However, if the contributions are tax deductible, as with a traditional IRA or employer 401(k), then generally the distributions will be taxed. (Table I-2 shows some traditional IRA and Roth IRA differences).

Just enter your 1099-R as it appears and answer a few questions—we’ll figure out what, if anything, will be taxed.

What's a retirement plan rollover?

A rollover is a (generally) tax-free distribution of funds from one plan to another plan that follows the IRS rules. A reason for doing this might be to keep the funds tax deferred until retirement.

You’ll still need to enter your 1099-R info and answer a few questions for us. We'll figure out what, if anything, will be taxed.

Are early distributions penalized?

Early distributions before age 59 ½ generally get an extra 10% federal tax on top of your regular income tax rate. Some states also charge additional penalties. However, if you took money out of your retirement account under one of these exceptions, you might not have to pay the same penalties:

Also, effective starting for tax year 2024:

Once you enter the distribution information from your 1099-R form, we'll help you check for any exceptions that could reduce the tax.

What if I’m over age 65?

If you're over age 65, your Standard Deduction is higher. You may also get the Credit for the Elderly or Disabled (as much as $7,500) based on your age, income, and filing status. We’ll help you to see if you qualify, and show you how to claim it.