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To enter a traditional IRA distribution, complete the following steps.

1. In Screen 1099R in the Retirement folder, enter the distribution information as reported on Form 1099-R and mark the IRA/SEP/SIMPLE field to indicate that the 1099-R is for an IRA distribution.
2. To calculate additional taxes using Form 5329, choose the appropriate codes in the following fields in Screen 1099R-2. If there are no additional taxes on this IRA distribution and Form 5329 is not required, skip this step and continue to step 3.
   • Early distribution code
   • Exception amount
   Note: If the Early distribution exception code field contains a code, the Exception amount field must contain an amount.

3. In Screen IRA, enter the taxpayer's basis in the Traditional IRA basis field and the traditional IRA value amount in the Traditional IRA value on 12/31/22 (including rollovers) field. This information is used to calculate the taxable and nontaxable portions of the distribution on Form 8606. These entries proforma from year to year.

4. Review Form 1040, line 4b, as well as any of the following, if applicable: Form 8606, the Traditional IRA Deduction Worksheet (located in the IRA folder) and the IRA Distribution Report (located in the IRADist folder).

Related Topics

Entering Roth distributions

Individual retirement account FAQs (1040)

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