Page 34 - Individual Forms & Instructions Guide

14:28 - 20-Jan-2023
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1. You received a distribution from would otherwise be included in your in- enter the total of the taxable amounts on
an IRA (other than a Roth IRA) and you come. If your IRA includes nondeducti- line 4b. Enter the total amount of those
made nondeductible contributions to any ble contributions, the distribution is first distributions on line 4a.
of your traditional or SEP IRAs for 2022 considered to be paid out of otherwise You may have to pay an addi-
or an earlier year. If you made nonde- taxable income. See Pub. 590-B for de- tional tax if you received an
ductible contributions to these IRAs for tails. ! early distribution from your
CAUTION
2022, also see Pub. 590-A and Pub. You can't claim a charitable IRA and the total wasn't rolled over. See
590-B. ! contribution deduction for any the instructions for Schedule 2, line 8,
2. You received a distribution from CAUTION QCD not included in your in- for details.
a Roth IRA. But if either (a) or (b) be- come.
low applies, enter -0- on line 4b; you More information. For more informa-
don’t have to see Form 8606 or its in- Exception 4. If all or part of the distri- tion about IRAs, see Pub. 590-A and
structions. bution is a health savings account (HSA) Pub. 590-B.
a. Distribution code T is shown in funding distribution (HFD), enter the to-
box 7 of Form 1099-R and you made a tal distribution on line 4a. If the total Lines 5a and 5b
contribution (including a conversion) to amount distributed is an HFD and you Pensions and Annuities
a Roth IRA for 2016 or an earlier year. elect to exclude it from income, enter -0-
on line 4b. If only part of the distribu-
b. Distribution code Q is shown in tion is an HFD and you elect to exclude You should receive a Form 1099-R
box 7 of Form 1099-R. that part from income, enter the part that showing the total amount of your pen-
3. You converted part or all of a tra- isn't an HFD on line 4b unless Exception sion and annuity payments before in-
ditional, SEP, or SIMPLE IRA to a Roth 2 applies to that part. Enter “HFD” next come tax or other deductions were with-
held. This amount should be shown in
IRA in 2022. to line 4b. box 1 of Form 1099-R. Pension and an-
4. You had a 2021 or 2022 IRA con- An HFD is a distribution made di- nuity payments include distributions
tribution returned to you, with the rela- rectly by the trustee of your IRA (other from 401(k), 403(b), and governmental
ted earnings or less any loss, by the due than an ongoing SEP or SIMPLE IRA) 457(b) plans. Rollovers and lump-sum
date (including extensions) of your tax to your HSA. If eligible, you can gener- distributions are explained later. Don’t
return for that year. ally elect to exclude an HFD from your include the following payments on lines
5. You made excess contributions to income once in your lifetime. You can't 5a and 5b. Instead, report them on
your IRA for an earlier year and had exclude more than the limit on HSA line 1h.
them returned to you in 2022. contributions or more than the amount • Disability pensions received before
that would otherwise be included in your you reach the minimum retirement age
6. You recharacterized part or all of
a contribution to a Roth IRA as a contri- income. If your IRA includes nondeduc- set by your employer.
bution to another type of IRA, or vice tible contributions, the HFD is first con- • Corrective distributions (including
versa. sidered to be paid out of otherwise taxa- any earnings) of excess elective defer-
ble income. See Pub. 969 for details. rals or other excess contributions to re-
Exception 3. If all or part of the distri- The amount of an HFD reduces tirement plans. The plan must advise
bution is a qualified charitable distribu- ! the amount you can contribute you of the year(s) the distributions are
tion (QCD), enter the total distribution CAUTION to your HSA for the year. If you includible in income.
on line 4a. If the total amount distributed fail to maintain eligibility for an HSA Attach Form(s) 1099-R to
is a QCD, enter -0- on line 4b. If only for the 12 months following the month of TIP Form 1040 or 1040-SR if any
part of the distribution is a QCD, enter the HFD, you may have to report the federal income tax was with-
the part that is not a QCD on line 4b un- HFD as income and pay an additional held.
less Exception 2 applies to that part. En- tax. See Form 8889, Part III.
ter “QCD” next to line 4b.
A QCD is a distribution made direct- More than one exception applies. If Fully Taxable Pensions and
ly by the trustee of your IRA (other than more than one exception applies, include Annuities
an ongoing SEP or SIMPLE IRA) to an a statement showing the amount of each Your payments are fully taxable if (a)
organization eligible to receive tax-de- exception, instead of making an entry you didn't contribute to the cost (see
ductible contributions (with certain ex- next to line 4b. For example: “Line 4b – Cost, later) of your pension or annuity,
ceptions). You must have been at least $1,000 Rollover and $500 HFD.” But or (b) you got your entire cost back tax
age 70 1/2 when the distribution was you do not need to attach a statement if free before 2022. But see Insurance Pre-
made. only Exception 2 and one other excep- miums for Retired Public Safety Offi-
tion apply.
Generally, your total QCDs for the cers, later. If your pension or annuity is
year can't be more than $100,000. (On a More than one distribution. If you (or fully taxable, enter the total pension or
joint return, your spouse can also have a your spouse if filing jointly) received annuity payments (from Form(s)
QCD of up to $100,000.) The amount of more than one distribution, figure the 1099-R, box 1) on line 5b; don’t make
the QCD is limited to the amount that taxable amount of each distribution and an entry on line 5a.

-27- Need more information or forms? Visit IRS.gov.