I retired at the beginning of 2013. I had a company pension which I rolled over into an Ira. I was also able to contribute to the pension a small amount after taxes each paycheck. When I retired I was given options about what to do with the two pensions amounts. As I said I rolled over the larger amount and had them send me the amount that I had contributed to since it was after tax and would not be taxable again. I received two 1099R's, One for the amount I rolled over , It was correct. I received one for the amount I had contributed to. In the box for taxable amount I thought there would be a 0, but there is nothing. distribution code has a 7. Am I suppose to get a corrected form or is there a way to fix it when I file my taxes, without causing a problem with the Irs?
1099r for pension payout
Feb 13, 2014
1 Replies
When you rollover a pension in a partial rollover, it is assumed that the amount rolled over comes first from the taxable part and then from the nontaxable (cost basis) part. So, if the distribution you took was exactly equal to your cost basis, then you enter the gross amount of the distribution in the pension line of the 1040 and you enter zero as taxable. Should you get a query from the IRS, you would merely have to produce some document from the company that reflects your cost basis in the plan and that it matches the 1099-R.
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