Where to Report Your 1099-R on Your Tax Return

Report your 1099-R income on Form 1040, Schedule 1, line 5a or 5b depending on whether you took an early withdrawal

The 1099-R you received reports distributions from a retirement account, pension, or annuity. The IRS needs to see this income on your federal tax return. You enter it on Form 1040, Schedule 1 — the form where you list income that does not come from wages or self-employment.

If you took a distribution before age 59½ and did not meet an exception, you report it on line 5b (taxable amount of IRA distributions). If you took a distribution at 59½ or older, or met an exception like disability or a Roth conversion, you report it on line 5a (taxable amount of pensions and annuities). The 1099-R itself tells you which amount is taxable in box 2a.

You will also need to check box 2b on the 1099-R. If it is marked, you may owe an additional 10 percent early withdrawal penalty on top of regular income tax. You report this penalty on Form 5329 and add it to your Form 1040.

Key Takeaways

• Enter the taxable amount from box 2a of your 1099-R on Form 1040, Schedule 1, line 5a or 5b.
• Use line 5a for distributions taken at age 59½ or older, or those that meet an early withdrawal exception.
• Use line 5b for early withdrawals that do not meet an exception and are subject to the 10 percent penalty.
• If box 2b on the 1099-R is marked, file Form 5329 to report the 10 percent early withdrawal penalty.
• Attach Copy B of your 1099-R to your return if you are filing on paper; e-filing systems match it electronically.

Understanding box 2a versus box 2b on the 1099-R

Box 2a shows the total amount of your distribution. Box 2b shows how much of that is taxable as ordinary income. These are not always the same number. For example, if you withdrew $10,000 from a traditional IRA and $3,000 of it came from nondeductible contributions you made in the past, box 2a might say $10,000 but box 2b might say $7,000. You report only the box 2b amount on your tax return.

The payer — your bank, brokerage, or plan administrator — calculates box 2b based on information you gave them. If you think the taxable amount is wrong, contact the payer first to ask them to issue a corrected 1099-R. Do not guess or change the number yourself on your return.

When you have multiple 1099-Rs from different sources

If you received more than one 1099-R — for example, one from an IRA and one from a pension — you add all the taxable amounts together and enter the total on Schedule 1. You do not enter each one separately on different lines. Attach all copies of your 1099-Rs to your return.

If one 1099-R is from a Roth IRA and another is from a traditional IRA, both still go on the same line. The difference between Roth and traditional is already reflected in what the payer put in box 2b. A Roth distribution that is may have access to (taken after age 59½ and five years after your first Roth contribution) may show zero in box 2b because none of it is taxable.

Reporting the 10 percent early withdrawal penalty on Form 5329

If you took a distribution before age 59½ and box 2b on the 1099-R is marked, you owe a 10 percent penalty on the taxable amount unless you meet an exception. Common exceptions include disability, medical expenses over 7.5 percent of your income, health insurance while unemployed, and substantially equal periodic payments (SEPP).

You report the penalty using Form 5329, Part I. Line 1 asks for the amount subject to the penalty. Line 2 asks if you meet an exception. If you do, you enter the exception code and the amount that qualifies for the exception. Line 4 calculates the penalty (10 percent of the amount that does not may have access to). You then transfer this penalty amount to Form 1040, line 24.

If you meet an exception, you still file Form 5329 to tell the IRS why you do not owe the penalty. Do not skip it just because you think you may have access to — the IRS uses it to match your claim against the box 2b amount on your 1099-R.

Roth conversions and the pro-rata rule

If you converted money from a traditional IRA to a Roth IRA, you will receive a 1099-R for the conversion. The taxable amount depends on how much of your total IRA balance was in pretax money at the time of the conversion. This is called the pro-rata rule.

For example, if you had $50,000 in pretax traditional IRA money and $10,000 in after-tax money, and you converted $12,000 to a Roth, roughly $10,000 of the conversion is taxable (because 10/60 of your total balance was pretax). The payer calculates this and puts the taxable amount in box 2b. You report it on Schedule 1, line 5a, because conversions are not subject to the early withdrawal penalty even if you are under 59½.

What happens if you do not report the 1099-R

The IRS receives a copy of every 1099-R issued to you. If you do not report it on your return, the IRS will notice the mismatch and may send you a notice asking you to pay tax on the unreported income, plus interest and penalties. It is easier to report it correctly the first time.

If you received a 1099-R by mistake — for example, the payer issued one when they should not have — contact the payer and ask for a corrected form. If the payer refuses or you cannot reach them, you can still file your return and attach a statement explaining the error. Include a copy of the incorrect 1099-R and explain why it should not have been issued.

Frequently Asked Questions

Do I report a 1099-R on Schedule C if I am self-employed?

No. Schedule C is for self-employment income only. A 1099-R is retirement or pension income, which goes on Schedule 1 regardless of whether you are self-employed. You report it separately from your business income.

What if the 1099-R shows an amount but says I do not owe tax on it?

This can happen with may have access to Roth distributions or certain pension payments. Box 2b will show zero or a lower amount than box 1. Report only the box 2b amount on your return. If box 2b is zero, you do not report any income from that 1099-R.

Can I amend my return if I reported the 1099-R on the wrong line?

Yes. File Form 1040-X (Amended U.S. Individual Income Tax Return) and correct the line where you reported it. You will need to recalculate your tax and any credits that depend on your income. The IRS will process the amendment and send you a bill or refund.

What if I lost my 1099-R and cannot find it?

Contact the payer (the financial institution or plan administrator) and ask them to send you a duplicate. They are required to keep records and issue copies. If you cannot reach them, you can still file your return using the amount you remember, but note on your return that you are waiting for the official form. Attach the corrected 1099-R when you receive it.

Do I need to report a 1099-R if I rolled it over to another retirement account?

If you completed a direct rollover (the payer sent the money straight to the new account), the 1099-R may show the full amount but also show code G in box 7, meaning it is a rollover. You do not report rollovers as income. If you did an indirect rollover (the payer sent you the check and you deposited it yourself within 60 days), you still do not report it as income, but you must show the rollover on your return to prove it was not a taxable distribution.