Originally Posted by bobhope
Resulting from a legal settlement I received a check (I cashed the check) and a Form 1099-R. Box 1 Gross Distribution: $280.01; Box 2a Taxable Amount: BLANK; Box 2b Taxable Amount Not Determined & Total Distribution (Both are Checked); Box 4 and Box 12: Fed and State Taxes ARE Withheld; Box 7: Code 1; IRA/SEP/SIMPLE: NOT Checked; Boxes 3,5,6,8,9a,9b: BLANK
This money was NOT rolled over.
This was the result of mass legal action concerning my 401k plan.
On form 1040 do I include this $280 on lines 16a and 16b (both lines), or just on line 16b?
Any help would be appreciated. THANKS.
You should receive a copy of Form 1099-R, or some variation, if you received a distribution of $10 or more from your retirement plan.IT NEEDS TO BE REPORTED ON LINE 16B AS TAXABLE INCOME. code 1 in box seven means Early distribution, no known exception (in most cases under age 59 1/2).
However, if YOU rolled over the full amount of YOUr distribution into another qualified plan, YOU should enter that number in Line 15a and put a zero in line 15b.