jatrant
Level 1
12-07-2019
07:27 AM
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itonewbie
Level 15
12-07-2019
07:27 AM
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You'd need to determine the cost basis for the distribution and whether one of the exceptions for early distribution penalty would apply.
To the extent the distribution is a return of nondeductible contributions, it is not taxable. The excess over cost basis would be subject to tax and the 10% early distribution penalty would apply unless one of the exceptions is met.
The taxable amount would be reported on F.8606 and flow to F.1040, Line 4b. If early distribution penalty applies, the taxable amount would also flow to F.5329.
You may also refer to these articles for input instructions: https://accountants-community.intuit.com/articles/1608975-proseries-form-1099-r-faq-s
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