Total Distribution Checkbox on 1099R

Hughston — Mon, 18 Nov 2024 13:55:41 GMT

Does checking/unchecking the Total Distribution Checkbox change tax liability? Does it serve some other purpose?

Re: Total Distribution Checkbox on 1099R

dmertz — Mon, 18 Nov 2024 22:48:06 GMT

"Does checking/unchecking the Total Distribution Checkbox change tax liability?"

Generally, no. However, if it's a distribution that can at the option of the recipient be taxed differently if the distribution is a lump-sum distribution, box 2b Total Distribution being unmarked would imply that the distribution is not a lump sum distribution. Examples that require a lump-sum distribution are distributions from an employer plan of Net Unrealized Appreciation of company stock and special 10-year averaging of distributions from employer plans for those born before January 2, 1936 and their beneficiaries. Doing any of these options within TurboTax would require more than simply marking the Total Distribution checkbox.

The full list if items requiring lump-sum distributions is here: https://www.irs.gov/taxtopics/tc412

topic Total Distribution Checkbox on 1099R in Retirement tax questions

Total Distribution Checkbox on 1099R

Re: Total Distribution Checkbox on 1099R