If you received one or more of the distributions listed below during 2014, you are required to report the total gross amount of the distribution in box 16a and the taxable amount of the distribution in box 16b on your 2014 federal income tax form 1040.
The gross amount of distribution can be found in box 1 and the taxable amount of the distribution can be found in box 2a of your 1099-R, which was mailed to you in January 2015.
The following are taxable distributions:
- Withdrawal of taxable excess contributions while in active service or withdrawal of taxable excess retirement;
- Taxable loan amount at retirement;
- Defaulted loans;
- The taxable portion of your retirement allowance from the Qualified Pension Plan;
- Your total annuity payments for the year from the Tax-Deferred Annuity Program;
- Your total withdrawal from the Tax-Deferred Annuity program during the calendar year, including the refund of contributions after retirement and/or your minimum required distribution (MRD).
If the code in box 7 is 1 or L1, your taxable amount from box 2a is subject to an additional 10 percent tax. If your taxable distribution is subject to an additional tax, then multiply the taxable distribution by 10 percent and enter the result on line 59 of the tax form 1040 and you do not have to file form 5329.
You should contact your tax adviser for assistance in determining if your taxable distribution is subject to the additional 10 percent tax.
If your pension annuity is partially taxable and your form 1099-R does not show the taxable portion, you must use the general rule to figure the taxable portion. The general rule is explained in Publication 939. To obtain forms or publications, call the Internal Revenue Service at 1-800-TAX-FORM (1-800-829-3676).