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Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

Updated: 4/16/2013
Article ID: GEN12270

Form 1099-R is used to report the distribution of retirement benefits such as pensions, annuities or other retirement plans.

Variations of Form 1099-R include Form CSA 1099R, Form CSF 1099R and Form RRB-1099-R. Most public and private pension plans that are not part of the Civil Service system use the standard Form 1099-R.

You should receive a copy of Form 1099-R, or some variation, if you received a distribution of $10 or more from your retirement plan.

The following types of transactions are reported on Form 1099-R:

  • Distributions - payments made to you from your retirement plan during the year.
  • Conversions - the amount moved from a traditional retirement plan to a Roth IRA.
  • Rollovers - the process of moving your retirement savings plan into another account.
  • Recharacterizations - a taxpayer elects to redefine a conversion or contribution already made to meet certain rules for distributions.

The various boxes on Form 1099-R determine whether the transaction is taxable, and whether the transaction it subject to a penalty or additional tax. Since this determination is based upon the interaction of all of the items reported on the Form 1099-R, it is important that you accurately report all of the information on the form when completing your tax return.

Entering Form 1099-R into TurboTax

Form 1099-R is one of the more complex IRS forms.  Why worry about it when you can let TurboTax do the work for you?  When you use TurboTax to prepare your taxes, we’ll ask you questions about your Form 1099-R, walk you through the process of entering the correct information from the form, figure out how much of your distribution is taxable, and fill in all the right forms for you.

If you've already gone through the step-by-step interview and want to jump directly to the entry screen for Form 1099-R, follow these directions.

  1. Select the Federal Taxes tab (the Personal tab in the Home & Business edition).
  2. Select the Wages & Income subtab.
  3. Scroll down the Wages & Income screen until you see the Retirement Plans and Social Security group.
  4. Click on the Start/Update button to the right of the IRA, 401(k), Pension Plan Withdrawals category.
  5. Follow the prompts.

What is an early distribution?

Most benefits that are paid before the taxpayer has reached the age of 59 1/2 are considered to be early distributions. An additional 10 percent federal tax is imposed on early distributions to discourage the misuse of retirement funds. Additionally, some states also impose a state penalty on these early distributions. The additional tax applies to the entire taxable amount of the distribution unless an exception applies.
 
Some common exceptions include: disability, death, an IRS levy on the plan, and medical expenses exceeding 7.5 percent of the taxpayer's adjusted gross income (AGI). An exception is also met if the payments are made to an alternate payee under a qualified domestic relations (divorce) order.
 
When using TurboTax, you are walked through all of the questions necessary to determine whether you are subject to this additional tax and, if so, whether you are also entitled to use one of the exceptions.

What are the codes in Box 7 of the Form 1099-R?

Generally, please note that box 7 is not the only information on Form 1099-R that determines whether the distribution is taxable, or whether it is subject to a penalty or additional tax.  The information in other boxes on the Form 1099-R, plus information you provide during the TurboTax step-by-step interview is also used to make this determination.

Here is a table listing of the Box 7 codes on a Form 1099-R:

Box 7 Code
Description of Code
1
Early distribution (except Roth), no known exception
2
Early distribution (except Roth), exception applies
3
Disability
4
Death
5
Prohibited transaction
7
Normal distribution
8
Return of excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2012
9
Cost of current life insurance
A
May be eligible for 10-year averaging
B
Designated Roth account distribution
E
Distributions under EPCRS
F
Charitable gift annuity
G
Direct rollover of a distribution (other than a designated Roth account distribution) to a qualified plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA
H
Direct rollover of a designated Roth account distribution to a Roth IRA
J
Early distribution from a Roth IRA
L
Loan treated as deemed distribution
N
Recharacterized IRA contribution made for 2012 and recharacterized in 2012
P
Return of excess contributions plus earnings/excess deferrals taxable in 2011
Q
Qualified distribution from a Roth IRA
R
Recharacterized IRA contribution made for 2011 and recharacterized in 2012
S
Early distribution from a SIMPLE IRA in the first 2 years, no known exception
T
Roth IRA distribution, exception applies
U
Dividend distribution from ESOP under sec 404(k)
W
Charges/payments for purchasing qualified long-term care insurance contracts

What if my Form 1099-R entries are not working?

If you are not seeing the results you expect, try these steps:
  • Be sure you checked the box for the correct version of your form (1099-R, CSA 1099R, CSF 1099R, or RRB-1099-R)
  • Verify you didn't miss entering information from one of the boxes on the form.
  • Verify your box 7 entry, and check the explanation for the distribution code on your form. If the explanation doesn't match what you believe should have occurred, or if the result on your return does not match what you expected, call your financial institution.
  • Check that the amounts you entered were placed in the correct box numbers in the entry area.

What if I received two or more 1099-Rs?

 If you received two or more 1099-Rs, don't worry. TurboTax can handle multiple different 1099-Rs. After you have entered your first 1099-R, simply click on the Add Another 1099-R button, and we will walk you through step-by-step adding all your additional forms.

If you have yet to receive your 1099-R, please click here to explore your options.

Additional Questions

 If you need to correct or change any information you have entered from your 1099-R, the steps you take depends on if you have already filed your tax return.

  • If you have yet to file your return, simply follow the navigation instructions above, and correct or change your information.
  • If you have already filed your return, you will need to amend your return. Please click here for instructions.

For questions about printing, please click here.

If you have questions about the availability of form 1099-R, please click here.

 

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