The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/im-not-a-tax-expert-but-what-was-in-box-2a-30524336.aspx

Subject:  Re: Roth IRA early distribution penalty Date:  2/4/2013  5:18 PM
Author:  TMFPMarti Number:  117629 of 121061

I'm not a tax expert, but what was in Box 2A? From what I can tell, this is the important part of a 1099-R.

For all IRA distributions Box 2a should be blank and the Taxable Amount Not Determined box checked unless the custodian has sufficient information to code a Roth distribution as qualified (not done in OP's case). This is because all IRA accounts are lumped when considering the taxability of a distribution, and no one custodian can be sure of having all the relevant information.

That's what's supposed to happen. I just got the 1099-R for a conversion I did. Box 2a showed it fully taxable, and the "not determined" box was checked. Oh well.

Whether OP has sufficient information to determine what, if any, income or penalty applies we don't know. We definitely know such information hasn't been presented here. The rules are in Chapter 2 of Pub 590, but we don't know the facts of what happened other than TT looked odd.

Phil
Rule Your Retirement Home Fool
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us