Are IRA or pension distributions taxable?

Created by Shubha Bisht, Modified on Wed, 24 Jan 2024 at 02:08 PM by Shubha Bisht

According to the IRS, all or some portion of the amounts you receive may be taxable unless the payment is a qualified distribution from a designated Roth account. The simplest way to check on what portion is taxable is through your 1099-R. You’ll receive this every year that you take a distribution.

  • Box 2a shows the taxable amount of your distribution. 

  • Box 2b 

    • If the total distribution box is checked, you may qualify for special elections that may lower your tax. 

    • If the taxable amount is not determined box is checked, this means the payer doesn’t know how much is taxable.

  • Box 7 shows the specific type of distribution you received and whether you need to pay a 10% penalty on early distribution.

 

Additional Resources:

 

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