1099R

[chenschuh]

A client came in with 1099R from firefighter's relief association.

Box 1 gross distribution 20000

Box 2  0

Box 2b taxable amunt not determined

Box 4 has withholding for fed tax

Box 7 code 7

is it taxable or nontaxable?

[IRonMaN]

If the association is like the ones in my neck of the woods, it's all taxable.  But, a good chunk of the time they are rolled over so I have to ask - did they take the money and run or did it get rolled over into an IRA?

[Just-Lisa-Now-]

Is it really a zero in Box 2 or is it just blank?

[chenschuh]

0 on box 2

but why withholding federal tax and state tax

[chenschuh]

Did not roll over to IRA. I read from some of the post , it seems if it's roll over to pension, the its beccome taxable events.

[qbteachmt]

"if it's roll over to pension, the its beccome taxable events."

Your taxpayer cannot "roll over to pension" because a pension is an employer-controlled plan. That's why they might be able to roll to an IRA = under the individual's control.

"is it taxable or nontaxable?"

Did you ask your taxpayer what happened to the funds?

"but why withholding federal tax and state tax"

That's typically mandatory if your taxpayer had control of the funds; that's what "distribution" means.

[JazzyTaxes]

If it's like the firefighter association 1099-Rs around here, yes it's all taxable for the Fed, but then it gets deducted for the State.