What IRA distributions to report on Form 1040 line 4a

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Topic Author
PennySaved
Posts: 116
Joined: Tue Mar 06, 2012 5:05 pm

What IRA distributions to report on Form 1040 line 4a

Post by PennySaved »

I do my own taxes myself, and am I confused about what IRA distributions get reported on Form 1040 line 4a. The IRS instructions seem to indicate that taxable distributions from a traditional IRA do NOT get reported on line 4a (unless they meet a long list of exceptions), but do get reported on line 4b. In 2020, I had distributions from:

(1) an inherited IRA (fully taxable, assume no non-deductible contributions involved) distribution code 4 on 1099-R

(2) taxable distributions from a traditional IRA (“rollover IRA”) I created by rolling over part of my TSP retirement account a few years ago and
(3) conversions from this same non-inherited IRA (“rollover IRA”) to a Roth IRA.

Total distributions for (2) and (3) were reported on one Form 100-R with distribution code 7. Under Exception 2 of the IRS instructions for lines 4a and 4b, I can’t see any direction or reason that I should report the distributions of the inherited IRA or the taxable distributions from the rollover IRA on line 4(a). However, the IRS instructions say “if you received more than one distribution, figure taxable the amount of each distribution and enter the total of taxable amounts on line 4b. Enter the total amount of those distributions on line 4a. So does this mean I should include both the taxable distributions in line 4a, along with the amount of the Roth conversion?

Hypothetical: What if I only had a taxable distribution from the rollover IRA (inherited IRA has been emptied) and no Roth conversions? Would the amount in 4a be zero?
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CAsage
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Re: What IRA distributions to report on Form 1040 line 4a

Post by CAsage »

Never mind.... I just let the software figure it out.
Salvia Clevelandii "Winifred Gilman" my favorite. YMMV; not a professional advisor.
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FIREchief
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Re: What IRA distributions to report on Form 1040 line 4a

Post by FIREchief »

The 1040 instructions are indeed poorly written for this. I would summarize by saying that unless you only have direct taxable withdrawals, you will enter the entire amounts reported on 1099-Rs (withdrawals, trustee to trustee transfers, Roth conversions, etc.) on 4a and than report the entire taxable amounts on line 4b. If any of the amounts were transferred to other IRA accounts, enter the word "Rollover" next to 4b. If there were also HSA funding distributions and/or QCDs, I believe that you need to add an attachment explaining the breakdown. Remember, the IRS should have most/all the info already as they receive copies of the 1099s. I don't know if there is anything special about distributions from an inherited IRA. Please see my signature.
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.
Topic Author
PennySaved
Posts: 116
Joined: Tue Mar 06, 2012 5:05 pm

Re: What IRA distributions to report on Form 1040 line 4a

Post by PennySaved »

Thanks FIREChief. I will report all the IRA distributions on line 4a. Seems like the safest thing to do.
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