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Lou, Tax Preparer
Category: Tax
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Experience:  25+ yrs Experience Personal Income Taxes - Former DM for H&R Block in California
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I received a distribution from my pension

Resolved Question:

My 1099-R states that the taxable amount is 10862.00. I did not roll over any of that amount. I did, however have 325000.00 that was totally rolled over into tax deferred. How much do I have to pay?
Submitted: 6 years ago.
Category: Tax
Expert:  Lou replied 6 years ago.

Hello and thank you for contacting Just Answer. We appreciate the opportunity to be of assistance to you.

There should be no current tax liability on the $325,000 if you had the full amount of one tax deferred account transferred into another tax deferred account (i.e. 401(k) to IRA).

If the numeric code in box 7 is a 7 then that indicates it was a normal distribution from some retirement account and that amount will be added to your other income to determine your total tax liability.

If it is a 'normal distribution' then you pay income tax on that amount based upon your filing status, # XXXXX dependents and other allowable adjustments and expenses.

If there is any other code either Alpha or Numeric then penalties may (or may not) apply.

Are you taking distributions from any retirement account?

Lou, Tax Preparer
Category: Tax
Satisfied Customers: 404
Experience: 25+ yrs Experience Personal Income Taxes - Former DM for H&R Block in California
Lou and 5 other Tax Specialists are ready to help you
Customer: replied 6 years ago.
Yes, I knew that there was no tax on the rolled over amount, but I also received a 1099-R for the 10862.00 that was not rolled over, and that was what I wanted to know how to calculate what I owe on that. The code is 7, normal distribution, and it is from a pension from the City of San Diego.
Expert:  Lou replied 6 years ago.

It will go on line 15 if it is a distribution from an IRA or on line 16 if it from a pension.

From what you have told me it would most likely end up on line 16b and be added to your gross income (line 22 1040), this amount will be reduced by any adjustments (line 37 1040), standard or Schedule A deductions (whicever is greater line 40 1040), and exemptions (line 42 1040) to end up with your taxable income (line 43 1040). Your tax will be calculated from that amount.

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Lou
Lou
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25+ yrs Experience Personal Income Taxes - Former DM for H&R Block in California