Received 1099-R from Litigation with line 2a blank...

Forum|Forum|4 years ago
April 8, 2022
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Received a 1099-R from TERRAZA V SAFEWAY ERISA LITIGATION QSF, Line 1: 444.96, 2a is BLANK, Line 2b: taxable amount not determined "checked", Line 3: blank, Line 4: 88.99, all other lines: blank. Question #1: Looks like payment came from a law firm... Would this be a Qualified or NonQualified Plan? Question #2: Confused as to why Line 2a is blank, 2b shows: taxable amount not determined is checked, Line 4 shows taxes withheld: 88.99... this looks messed up, won't this trigger an Audit if I report it as shown?

Best answer by ColeenD3

Whether or not it is qualified is determined by the plan on which it was based. No, enter the 1099-R exactly as it appears. If the payer doesn't know for a fact whether or not it is taxable, it is filed in this way. You won't be audited because of it. It will be taxable unless you have paperwork showing why it wouldn't be.

ColeenD3Answer

Level 15

dmmakAuthor

Level 2

Thank you very much for your response. The plan from which it was based is a "Qualified" plan. I will enter the info exactly as shown on the 1099-R. Thanks again.

dmertz

Level 15

1. "ERISA" indicates that this is a distribution from a qualified retirement plan, presumably Safeway's plan in this case.

2. If you had no after-tax basis in the plan (due to after-tax contributions or loan repayments after defaulting, for example), the entire amount is taxable, which is usually the case.