On Form 1099-R, you may be asked if you wish to carry the distribution to Form 8880. According to the IRS instructions, the following types of retirement distributions should not be included when figuring 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 a 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 non-spousal beneficiary
Exception: Don’t include your spouse’s distributions with yours when entering an amount on line 4 if you and your spouse did not 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.