The following types of retirement distributions should not be included when figuring certain distributions on line 4 of Form 8880, the Credit for Qualified Retirement Savings Contributions:
- Distributions not taxable as the result of a rollover or a trustee-to-trustee transfer
- Distributions that are taxable as the result of an in-plan rollover to your designated Roth account
- Distributions from your eligible retirement plan (other than a Roth IRA) rolled over or converted to your Roth IRA
- Loans from a qualified employer plan treated as a distribution
- Distributions of excess contributions or deferrals (and income allocable to such contributions or deferrals)
- Distributions of contributions made to an IRA during a tax year and returned (with any income allocable to such contributions) on or before the due date (including extensions) for that tax year
- Distributions of dividends paid on stock held by an employee stock ownership plan under section 404(k)
- Distributions from a military retirement plan (other than the federal Thrift Savings Plan)
- Distributions from an inherited IRA by a nonspousal beneficiary
Exception: Don’t include your spouse’s distributions with yours when entering an amount on line 4 if you and your spouse didn’t file a joint return for the year the distribution was received.
For more information about Form 8880, please refer to the form and instructions found here.