Are IRA or pension distributions taxable?

They can be. If you took a distribution from your IRA or pension plan, you'll get Form 1099-R. This form, along with additional info you provide, will determine what portion, if any, of your distribution is taxable.

These boxes on the 1099-R play key roles in determining taxability:

• Box 2a lists the taxable portion of your distribution, but this can change once you give us more info.
  • If you see a 0 (zero), then none of it's taxable.
  • If the box is blank (empty), the taxable amount needs to be calculated.
• Box 2b can also help determine the taxable amount.
  • If the Total distribution box is checked, we'll see if you qualify for any special elections that may lower your tax.
  • If the Taxable amount not determined box is checked, it means the payer didn’t know the taxable amount of your distribution.
• Box 7 provides important codes that identify the specific type of distribution you received and whether you owe a 10% early distribution penalty or qualify for an exception.

Just enter the information as it appears on your 1099-R form. We'll use it and your answers to a series of questions to determine the taxable amount of your distribution.

We can help you enter your 1099-R.