This reports distributions from a retirement plan or profit-sharing plan, including an IRA, pension, or annuity. It's possible to get one of these even if you're not yet retired — for instance, if you took out a loan from your 401(k) and didn't repay it. This form shows how much you were paid during the year (and how much was withheld for taxes). You will report this under the "Income" section of the tax flow > "Retirement income".
Breaking down the boxes:
- Box 1: Gross distribution — Total amount you were paid during the year.
- Box 2a: Taxable amount — How much of the distribution is subject to tax. If this box is blank, it's up to you to determine the taxable amount based on IRS rules.
- Box 4: Federal income tax withheld — How much tax was already taken out of the distributions.
- Box 5: Insurance premiums — Reports certain types of insurance premiums.
- Box 7: Distribution code(s) — Represents the type of distribution you received.
- Box 9a: Your percentage of the total distribution.
- Box 9b: Used to compute the taxable part of the distribution — For a life annuity from a qualified plan or from a section 403(b) plan (with after-tax contributions), an amount may be shown for the employee’s total investment in the contract.
- Box 10: Amount allocable to IRR within 5 years.
- Box 11: First year of designated Roth contribution.
- Box 12: State tax withheld — This shows if any state tax was taken out.
- Box 13: Date of payment.
- Boxes 14-19: State and local information are for informational purposes only.