Retirement Tax Planning Tips, Ideas, & Help
- What if I have a CSA-1099-R?
- Where can I get my total basis in IRAs for 2012 and earlier years?
- Where can I get my spouse's total basis in IRAs for 2012 and earlier years?
- What is a rollover?
- How much is my rollover if my old employer withheld 20% of my distribution for taxes?
- Where can I find the year-end value of my IRA?
- Where can I find the year-end value of my spouse's IRA?
- What does the number or letter in Box 7 of my 1099-R mean?
- Why isn't my pension distribution showing up as taxable income on my return?
- When you move money from your employer's retirement plan to a different employer's retirement plan or to an IRA account within 60 days of receiving the distribution.
- When you move money from your IRA account to a different IRA account or retirement plan within 60 days of receiving the IRA distribution.
For example, if your total distribution was $1,000, but your old employer only sent you $800 because they withheld $200 in federal withholdings, then your rollover is $800 if you moved $800 into an IRA account. If you moved $1,000 into the IRA account (you added $200 of your own money to equal the amount of federal withholdings), then your rollover is $1,000.
1 - Early distribution, no known exception (in most cases under age 59 1/2)
2 - Early distribution, exception applies (under age 59 1/2)
3 - Disability
4 - Death
5 - Prohibited transaction
6 - Section 1035 exchange
7 - Normal distribution
8 - Excess contributions plus earnings taxable in 2013
9 - Cost of current life insurance protection
A - May be eligible for 10-year tax option (not supported)
B - Designated Roth account distribution
D - Annuity payments from nonqualified annuities that may be subject to tax under section 1411.
E - Distributions under Employee Plans Compliance Resolution System (EPCRS)
F - Charitable gift annuity
G - Direct rollover to a qualified plan.
H - Direct rollover of a designated Roth account distribution to a Roth IRA.
J - Early distribution from a Roth IRA, no known exception (in most cases under age 59 1/2)
L - Loans treated as distributions
N - Recharacterized IRA contribution
P - Excess contributions plus earnings/excess deferrals taxable in prior year
Q - Qualified distribution from a Roth IRA
R - Recharacterized IRA contribution
S - Early distribution from a SIMPLE IRA in first 2 years, no known exception (under age 59 1/2) May be subject to an additional 25 percent tax.
T - Roth IRA distribution, exception applies
U - Dividend distribution from ESOP under section 404(k).
W - Charges or payments for purchasing qualified long-term care insurance contracts under combined arrangements.
Second, check the Box 7 distribution code on the 1099-R screen to make sure you selected the correct distribution code. Generally, the code will be a 1 if its an early retirement distribution subject to the 10% penalty, or it will be a 7 if it is a normal retirement distribution.
Third, make sure you didn't select to treat the distribution as a rollover. On the screen right after the 1099-R screen, the Distribution Rollover screen, there is a checkbox that if marked, will treat the entire 1099-R distribution as being a rollover and not taxed. There is also an amount box on that screen where you can specify part of the distribution as a rollover. Make sure those aren't used if the 1099-R wasn't a rollover distribution.