Form 1099‑R reports distributions received from:
- Pensions
- Annuities
- Retirement or profit-sharing plans
- Traditional, SEP, SIMPLE, and Roth IRAs
- Insurance contracts
- Disability payments from retirement plans
- Certain death benefit payments
The income reported on Form 1099‑R may be fully taxable, partially taxable, or non-taxable, depending on the type of distribution and whether after-tax contributions were made.
Where to Enter Form 1099‑R
Navigation Path
Federal → Income → Select My Forms → 1099‑R, RRB, SSA → Add or Edit a 1099‑R
Important: Form 1099‑R cannot be uploaded or imported and must be entered manually.
Common Boxes on Form 1099‑R
Box 1 - Gross Distribution
Enter the amount exactly as shown on your Form 1099‑R.
- Represents the total amount distributed during the year
- May include both taxable and non-taxable amounts
Box 2a - Taxable Amount
This box shows the portion of the distribution that is taxable.
- If Box 2a is blank, the distribution is not automatically non-taxable.
- A blank Box 2a often means the payer could not determine the taxable amount.
When the Simplified Method Is Required
Use the Simplified Method Worksheet if all of the following apply:
- The distribution is from a pension or annuity (not an IRA),
- The taxpayer has after-tax contributions (cost or basis), and
- The annuity starting date is after November 18, 1996.
The Simplified Method Worksheet is available within the Form 1099‑R entry section of the program.
When the Simplified Method Does Not Apply
- Traditional or Roth IRA distributions (may require Form 8606)
- Distributions with no after-tax contributions
- Certain annuities with starting dates before November 19, 1996, where the General Rule may apply
Box 2b - Taxable Amount Not Determined
Select this checkbox only if it is checked on your paper Form 1099‑R.
For many traditional IRA distributions, payers check this box because they do not track the taxpayer's IRA basis.
Common Exceptions
Return of contributions plus earnings before the due date (IRC §408(d)(4))
- Box 2a generally shows only the earnings.
- Box 2b is typically not checked.
Excess contributions removed after the due date (IRC §408(d)(5))
- Box 2a may be blank.
- Box 2b is generally checked.
Direct rollovers to employer plans
- Box 2a may be zero.
- Box 2b is generally not checked.
Box 2b - Total Distribution Checkbox
Form 1099‑R also includes a separate Total Distribution checkbox.
Check this box only if:
- The distribution completely emptied the account, or
- The final installment payment reduced the account balance to zero.
Do not mark this box for ongoing periodic payments unless it is the final payment.
Box 4 - Federal Income Tax Withheld
Enter any federal income tax withheld from the distribution.
Box 7 - Distribution Codes
Tax Year 2026 Update
Beginning with the 2026 Form 1099‑R, the IRS reorganized Box 7 as follows:
- Box 7a – Distribution code(s)
- Box 7b – IRA/SEP/SIMPLE indicator
- Box 7c – Trump Account indicator
- Box 7d – Earnings on excess contributions indicator
Distribution codes identify the type of distribution and help determine whether any additional tax on early distributions may apply.
The IRS also added Code Y for certain Qualified Charitable Distributions (QCDs). For 2026, use of Code Y is optional for payers.
For a list of distribution codes, see: What do the distribution codes in Box 7 mean?
How Do I Change the IRA/SEP/SIMPLE Checkbox?
If your paper Form 1099‑R indicates that the distribution came from an IRA, SEP IRA, or SIMPLE IRA, make sure the IRA/SEP/SIMPLE indicator is checked within the program.
To Update the Indicator
- Go to Federal.
- Select Income.
- Choose 1099‑R, RRB‑1099, RRB‑1099‑R, SSA‑1099.
- Open the Form 1099‑R you entered.
- Locate the IRA/SEP/SIMPLE indicator.
- Check the box if it is marked on the paper form.
- Leave it unchecked if it is not marked.
- Select Continue to save your changes.
Box 10 - In-Plan Roth Rollover Amount
Box 10 reports the portion of a distribution attributable to an in-plan Roth rollover (IRR).
- Applies only when funds are rolled into a designated Roth account within the same retirement plan.
- IRS Publication 575 may help determine the taxable portion when applicable.
State and Local Information (Boxes 12-17)
When entering state information:
- If state withholding is entered in Box 14, a value should also be entered for the associated state distribution amount.
- The state distribution amount often matches either Box 1 or Box 2a.
Enter all state and local information exactly as shown on your Form 1099‑R.
Reporting Disability Pension Income
Select**"Report on Form 1040, Line 1h"** only when both of the following apply:
- Distribution Code 3 (Disability) is reported, and
- The taxpayer has not reached the employer's minimum retirement age.
Before Minimum Retirement Age
- Disability pension payments are treated as wages.
- Reported on Form 1040, Line 1h.
On or After Minimum Retirement Age
- Disability payments are treated as regular pension income.
- Reported with pension and annuity income rather than on Line 1h.
Distributions Not Allowed for Form 8880
Certain retirement distributions reduce or eliminate eligibility for the Retirement Savings Contributions Credit (Form 8880).
Use the**"Does not carry to Form 8880"** option when applicable.
For additional information, see: Distributions Not Allowed on Form 8880.
Additional Resources
2026 Form 1099‑R Changes Included in This Article
- Box 7 is now divided into Boxes 7a through 7d.
- The IRA/SEP/SIMPLE indicator is now reported as Box 7b.
- New Trump Account indicator added in Box 7c.
- New Earnings on Excess Contributions indicator added in Box 7d.
- New optional Code Y added for certain Qualified Charitable Distributions.