Enter Traditional IRA distribution
To enter a traditional IRA distribution, complete the following steps.
- In the1099Rscreen in theRetirementfolder, enter the distribution information as reported on Form 1099-R and mark theIRA/SEP/SIMPLEfield to indicate that the 1099-R is for an IRA distribution.
- To calculate additional taxes using Form 5329, select the codes in the following fields in the1099R-2screen. If there are no additional taxes on this IRA distribution and Form 5329 is not required, skip this step and continue to step 3.
- Early distribution code
- Exception amount
noteIf theEarly distribution exception codefield contains a code, theException amountfield will need to contain an amount. - In theIRAscreen, enter the taxpayer's basis in theTraditional IRA basisfield and the traditional IRA value amount in theTraditional IRA value on 12/31/23 (including rollovers)field. This information is used to calculate the taxable and nontaxable portions of the distribution on Form 8606. These entries proforma from year to year.
- Review Form 1040, line 4b, as well as any of the following: Form 8606, the Traditional IRA Deduction Worksheet (located in the IRA folder), and the IRA Distribution Report (located in theIRADistfolder).
