Common questions about fiduciary pensions - IRA and W-2G in Lacerte

Follow these steps to enter Form 1099-R in the program:

1. Go to Screen 19, Pensions, IRA, W-2G.
2. Click the Add button in the left navigation panel.
3. Under the Pensions, IRA, W-2G section, enter the Name of payer.
4. Scroll down to the Form 199-R or W-2G section.
5. Enter a 1 in 1=IRA/SEP/SIMPLE, 2=W-2G.
6. Enter the Gross distribution.
   • Enter the total pension or distribution received. This amount prints in full on the Other Income line of Form 1041.
7. Enter the Taxable amount.
   • Enter the taxable portion of the pension received. This amount prints in full on Form 1041.
8. Enter the Federal income tax withheld.
9. Select the Distribution code #1 (Ctrl+T) from the dropdown menu.
10. Complete any other applicable information as reported on the 1099-R.

Follow these steps to enter tax withholding on a pension:

1. Go to Screen 19, Pensions, IRA, W-2G.
2. Make sure you've 1 entered a 1 in 1=IRA/SEP/SIMPLE, 2=W-2G for the pension distribution in question
3. Enter the Federal income tax withheld.

This amount will be reported on Form 1041 as federal income tax withheld from a 1099 (Schedule G, line 14). Based on guidance from the IRS, Lacerte will treat withholding from retirement distributions as not subject to backup withholding. Since this amount isn’t considered backup withholding, credit for the tax withheld is claimed on the fiduciary return, and won’t be distributed to the beneficiary K-1s.

Follow these steps if you want to treat this amount as distributable to beneficiaries:

1. Go to Screen 43, Schedule K-1 Overrides/Miscellaneous.
2. Scroll down to the Credits and Credit Recapture (13) section.
3. Enter the beneficiary’s share of the withholding in Credit for backup withholding (B).
4. Repeat these steps for each beneficiary.