Triva isn't available right now.
Check out the support page for our phone number and hours
Screen 1099R-2 - Pension and Annuity (Continued) (1040)
Show all hidden content
Overview
Use this screen to enter information to complete Form 5329, Part I, Additional Tax on Early Distributions; Form 5329, Part IX, Additional Tax on Excess Accumulation in Qualified Retirement Plans; Form 4972, Tax on Lump Sum Distributions; and to provide details for U.S. Railroad Retirement Board payments and pensions of ministries. Up to 2 Forms 5329 generate, 1 for the taxpayer and 1 for the spouse.
note
- To complete Form 5329, Part II, enter information in the1099Qscreen located in theEducatefolder.
- To complete Form 5329, Parts III, IV, V, VI, VII, and VIII, and ABLE accounts, enter information in the 5329 screen in the Taxes folder.
- To force Form 5329 to print if it has data and whether or not it's required on a global basis, selectSetup,1040 Individual, theFederaltab, thenTax Returnin the Collation group area. In the Return Collation window, selectPages that can be forced to printin the Focus group area, the tab for the collation you want to modify (Government,Client, orPreparer), highlightForm 5329in the list, then selectAlways if data. SelectOKwhen finished. To force Form 5329 to print on a client basis, use CTRL+F to open Form 5329, selectEdit,Overrides, thenForce Form to Print.
- The 1099R-2 screen is linked to the corresponding 1099R screen. ThePayer's namefield andT, Sdesignation will match the screens. Be sure to use the correct 1099R-2 screen for data entry to get the correct treatment for the pension or annuity distribution.
Form 5329 - Additional Taxes
Part I:
Use this section to complete the Early Distribution portion of Form 5329.Part IX
: Use this section to complete the Tax on Excess Accumulation in Qualified Retirement Plans portion of Form 5329. Enter the information if the client is subject to the tax on excess accumulations.Early distribution code
Enter the code that correctly identifies the type of distribution to complete Form 5329, Part I.
Birth or Adopted child information
Use this statement to enter the child's information for either the birth or adoption of a child. Per the Form 5329 instructions, retirement distributions up to $5,000 can be excluded from the 10% early withdrawal for the birth or adoption of a child.
Multiple exceptions explanation
If there are multiple exceptions for additional tax on early distributions, use the statement to enter an explanation. If there are multiple 1099-R activities, enter the explanation only on one 1099R-2 screen. The tax application uses code 12 on Form 5329, line 2, when statement data exists. This statement prints with Form 5329.
Early distribution exception code
Enter the proper code to complete Part I of Form 5329 if the client is eligible for an exception to the early distribution tax and this information is not included on Form 1099-R.
note
Codes 1, 4, and 6 don't apply to distributions from IRAs. Codes 7, 8, and 9 only apply to IRAs.
Minimum required distribution
Enter the amount that the taxpayer should have received during the year if a minimum required distribution applied. Per the Form 5329 instructions, don’t include distributions received during the correction window.
Distributions received in current year
The tax application uses the gross distribution from the associated 1099R screen.
Request waiver of excise tax...
Use the attached statement to elect to request a waiver of the excise tax for a shortfall in minimum required distributions. The tax application will print
RC
(Reasonable Cause) and the amount requested to be waived on the dotted line next to line 54. The tax application will subtract the amount to calculate the shortfall reported on line 54. To pay the entire penalty initially, don't enter an amount in the statement's Amount column. The election will print with the explanation and the entire penalty amount will be calculated. The tax application will automatically print the tax election with the return. If the return is being filed electronically, the tax election will be included in the electronic file.note
If you make this election in the 1099R-2 screen, don't make the same election in the Elect screen in the Elections folder, as duplicate elections may print.
Minimum required distribution during correction window
If the correction window requirements are met, enter the amount of required minimum distributions the taxpayer should have received. See the Form 5329 instructions for correction window requirements.
Distributions received in correction window
Enter the distributions received during the correction window. Per the Form 5329 instructions, correction window distributions are subject to a reduced tax rate of 10%.
Amended return
Enter
X
in this field if the information entered in this screen is for an amended return. If this field is marked, the tax application will mark the corresponding checkbox on Form 5329.Print with firm data on form
The tax application assumes you're filing Form 5329 along with Form 1040. If you're filing Form 5329 by itself, enter
X
in this field. The tax application then prints the taxpayer address on Form 5329, Page 1, and the preparer information on Form 5329, Page 2. Form 5329 won't be included in an e-file when this checkbox is marked.Form 4972 - Lump-Sum Distributions Tax
Answer all questions in this section to determine if the taxpayer qualifies for lump-sum averaging.
If the same plan participant received more than 1 qualified distribution, combine the 1099-Rs and enter the totals on 1 set of 1099R and 1099R-2 screens. The tax application doesn't automatically combine 1099-Rs onto 1 Form 4972, so use only 1 set of 1099R and 1099R-2 screens for either taxpayer or spouse.
Averaging method
Enter the code that represents the applicable averaging method, or select a code from the fieldview.
note
- For a plan participant not born before 1936 but at least age 59 1/2, you'll also need to enter2as the 4972 averaging method (10 year with no capital gain). Don't enter averaging methods1or3, because the plan participant must be born before 1936 to choose the 20-percent capital gain election.
- For North Carolina returns, Form 4972 lump-sum distributions are included as other additions on Form D-400.
- For North Dakota returns, Form 4972 lump-sum distributions are included as additions on ND-1, Page 1.
- For Virginia returns, Form 4972 lump-sum distributions are included as additions to federal income on Forms 760, 763, and 760PY.
Entire distribution from qualified pension, profit sharing, or stock plan?
If you enter no, you can't use Form 4972.
Part of the distribution rolled over?
If you enter yes, you can't use Form 4972.
Distribution paid to a death beneficiary?
Enter
1
for yes or 2
for no to indicate if this distribution was paid to a beneficiary of a plan participant who died after reaching age 59 1/2 or who was born before 1936.Plan participant born before 1936...
Enter
1
for yes or 2
for no to indicate if the plan participant who received this distribution was born before January 2, 1936 and was in the plan at least 5 years before the year of distribution.note
If both the
Distribution paid to a death beneficiary
and Plan participant born before 1936 and plan participant 5 years prior to the distribution
fields are answered 2
for no, you can't use Form 4972.Form 4972 used by participant in a prior year?
If you enter yes, you can't use Form 4972.
Form 4972 used by beneficiary in a prior year?
If you enter yes, you can't use Form 4972.
Include net unrealized appreciation in income
Use the statement attached to this field to elect to include unrealized appreciation on employer securities, shown in 1099-R box 6, in income. The tax election will automatically print with the return. If the return is being filed electronically, the tax election will be included in the electronic file.
note
If you make this election in the 1099R-2 screen, don't make the same election in the Elect screen in the Elections folder, as duplicate elections may print.
Federal estate tax attributable to lump-sum distribution
Enter the amount of federal estate tax paid on this lump-sum distribution. If making the capital gain election, the tax application decreases the capital gain amount by the estate tax.
Form RRB-1099-R
RRB-1099-R Box 8 Repayments
This amount represents benefits that were repaid in the current year for a prior year. These repayments are potentially deductible in the current year to the extent they were included in income in a previous year.
Repayments of $3,000 or less are for state purposes only. If the total repayment is greater than $3,000, there is an option to deduct it on Schedule A, line 16, Other itemized deductions or take a credit against the tax on Form 1040 3, line 13d. Select the treatment in the
Treatment for repayments of more than $3,000
field.Treatment for repayments of more than $3,000
Enter the code that corresponds to the treatment to deduct the repayment when the total repayment is greater than $3,000.
Go to Repayments in IRS Publication 525 for details on determining the best alternative. If you select code 1, the repayment amount automatically transfers to Schedule A line 16, Other Itemized Deductions. If you select code 2, the tax credit must be calculated per Publication 525 and entered in the OtherTax screen, IRC section 1341 credit. A diagnostic will indicate if code 2 is selected but no credit has been entered on the OtherTax screen.
Ministerial Pension with Housing Allowance
When you enter information in these fields, the tax application calculates the allowed housing exclusion and the taxable amount of the distribution.
On the 1099R screen, enter
X
in the Ministerial pension with housing allowance
field and leave the field 2a, Taxable amount
blank. UltraTax CS calculates the lesser of the designated housing allowance, the actual housing expense, and the fair rental value of the home as the exclusion from taxable income. Any taxable amount of the distribution transfers automatically to Form 1040, line 4d, as well as lines 5a and 5b on the Clergy Worksheet 1, if required. A statement prints with the return to provide details of this calculation.note
The fields in this section are enabled if the
Ministerial pension with housing allowance
field is marked in the 1099R screen.Actual housing expenses
The taxpayer doesn't need to submit documentation supporting the expenses of providing a home; however, the taxpayer should be able to provide it to the IRS, if needed.
Form 8606 - Distributions Treated as Other Rollovers
Use this section to calculate the net taxable amount on Form 8606 Line 15c or 25c. Qualified amounts treated as rollovers are qualified birth or adoption distributions, emergency personal expense distributions, domestic abuse distributions, and terminal illness distributions that were both made in
2025
and repaid, in whole or part, within the 3-year repayment period.