What is Form 1099-R?
Your IRA custodian, 401(k) plan administrator, or pension fund sends a 1099-R when you take a distribution from a retirement account. It reports the gross distribution, taxable amount, and a distribution code that determines whether penalties apply.
SupportedKey Boxes
| Box | Description | Where it flows |
|---|---|---|
| Box 1 | Gross distribution | Form 1040 Line 4a or 5a |
| Box 2a | Taxable amount | Form 1040 Line 4b (IRA) or 5b (pension) |
| Box 2b | Taxable amount not determined | Preparer must compute taxable portion |
| Box 4 | Federal income tax withheld | Form 1040 Line 25b |
| Box 7 | Distribution code | Determines penalty applicability on Form 5329 |
Distribution Codes (Box 7)
| Code | Meaning | Penalty? |
|---|---|---|
| 1 | Early distribution, no exception | 10% penalty (Form 5329) |
| 2 | Early distribution, exception applies | No penalty |
| 3 | Disability | No penalty |
| 4 | Death | No penalty |
| 7 | Normal distribution (age 59.5+) | No penalty |
| G | Direct rollover to qualified plan | Not taxable |
| H | Direct rollover to Roth IRA | Taxable, no penalty |
How PaisaTax Handles It
- Upload or manual add — one slot per distribution/plan
- Plan type routing: PaisaTax determines whether this is an IRA distribution (Form 1040 Line 4) or a pension/annuity (Line 5) based on the IRA/SEP/SIMPLE indicator and plan type
- Penalty routing: Early distribution penalties route to the correct part of Form 5329 based on plan type (qualified plan, 403(b), traditional IRA, or Roth IRA)
Common Situations
- Rollovers (Code G): Gross distribution shows on Line 4a/5a but taxable amount is $0. Not taxable.
- Early distribution penalty: Code 1 triggers a 10% additional tax on Form 5329. The penalty is reported on Schedule 2 Line 8.
- Roth conversions (Code H): Full amount is taxable but no early withdrawal penalty.
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Info
If Box 2b "Taxable amount not determined" is checked, the preparer must calculate the taxable portion. For traditional IRAs with nondeductible contributions, this requires Form 8606.