On Form 1040, a 1099-R from an IRA goes on lines 4a and 4b, and a 1099-R from a pension, annuity, 401(k), 403(b), or 457(b) plan goes on lines 5a and 5b. The gross distribution in Box 1 of the 1099-R goes on the “a” line; the taxable amount in Box 2a goes on the “b” line. Any federal income tax withheld in Box 4 is added to your other withholding on line 25b. That’s the whole mapping, and the rest of this article explains the handful of situations where it needs a note next to the line or a second form attached.
Reading the 1099-R Before You Transfer Numbers
A 1099-R is issued whenever you receive $10 or more from a retirement plan, IRA, annuity, or insurance contract during the year.1Internal Revenue Service. About Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Four boxes do the work when you fill in your 1040:
- Box 1, Gross Distribution: the total paid out before any withholding. This is your “a”-line figure.
- Box 2a, Taxable Amount: the portion that counts as income. This is your “b”-line figure. If all contributions were pre-tax, it usually matches Box 1.
- Box 2b, Taxable Amount Not Determined: if checked, the payer didn’t calculate the taxable amount and you’ll need to figure it yourself.
- Box 4, Federal Income Tax Withheld: already sent to the IRS on your behalf, and reported later on line 25b.
Box 7 holds the distribution code. It tells the IRS why the money came out and whether a penalty is in play. Code 1 is an early distribution with no known exception. Code 7 is a normal distribution at age 59½ or older. Code G is a direct rollover. Code 4 is a payment to a beneficiary after death. Code Q is a qualified Roth distribution. Code 3 is disability.2Internal Revenue Service. 2025 Instructions for Forms 1099-R and 5498 – Section: Box 7. Distribution Code(s) The code decides whether anything beyond lines 4/5 and 25b needs to happen.
IRA Distributions: Lines 4a and 4b
If the 1099-R came from a traditional IRA, Roth IRA, SEP IRA, or SIMPLE IRA, put Box 1 on line 4a and Box 2a on line 4b. When the whole distribution is taxable, both lines show the same number. When none of it is taxable, line 4a shows the gross amount and line 4b shows zero.
Fill in line 4a even when 4b is zero. The IRS matches every 1099-R it receives against your return, and a blank “a” line next to a 1099-R the agency has on file produces a notice.
Three IRA situations call for a note next to line 4b:
- Rollover. If you rolled the distribution into another retirement account, enter the gross on 4a, zero on 4b, and write “Rollover” next to the line. A direct trustee-to-trustee transfer will show Code G in Box 7; a 60-day rollover won’t, but the reporting on your 1040 is the same once the money is redeposited in time.3Internal Revenue Service. Rollovers of Retirement Plan and IRA Distributions
- Qualified charitable distribution. If you’re 70½ or older and had your IRA custodian send up to $111,000 directly to a qualifying charity, report the full amount on 4a and only the non-charitable portion on 4b (zero if the entire distribution went to charity). Write “QCD” next to line 4b.4Congress.gov. Qualified Charitable Distributions from Individual Retirement Accounts
- Roth IRA. A qualified Roth distribution (Code Q) is fully tax-free: gross on 4a, zero on 4b. A non-qualified Roth distribution (often Code T or Code J) may have a taxable earnings portion that goes on 4b.2Internal Revenue Service. 2025 Instructions for Forms 1099-R and 5498 – Section: Box 7. Distribution Code(s)
Pensions and Annuities: Lines 5a and 5b
If the 1099-R came from an employer pension, 401(k), 403(b), government 457(b), or a commercial annuity, Box 1 goes on line 5a and Box 2a goes on line 5b. Same rule as the IRA lines: always complete 5a, even when 5b is zero.
A rollover from one of these plans is reported the same way as an IRA rollover: gross on 5a, zero on 5b, “Rollover” written next to the line. One quirk belongs to employer plans. Eligible rollover distributions are subject to mandatory 20% withholding unless the money moves directly to another plan or IRA.5Internal Revenue Service. 401(k) Resource Guide – Plan Participants – General Distribution Rules – Section: Rollovers from Your 401(k) Plan If you took the check yourself and want to roll over the full amount within 60 days, you have to replace that withheld 20% out of pocket; whatever you don’t redeposit becomes taxable on line 5b.
Retired public safety officers get a dedicated adjustment on this line. Up to $3,000 of pension distributions used to pay health insurance or long-term care premiums can be excluded from the taxable amount.6Internal Revenue Service. Publication 575 – Pension and Annuity Income Report the full distribution on 5a, the reduced taxable amount on 5b, and check the “PSO” box on line 5c.
Withholding Goes on Line 25b
The amount in Box 4 of the 1099-R is federal income tax your payer already sent to the IRS. Combine it with any other federal withholding you had during the year (from W-2s or other 1099s) and enter the total on line 25b of Form 1040. Skipping Box 4 means you lose credit for tax you already paid.
Withholding defaults vary by account type. Employer-plan rollover distributions are hit with the mandatory 20% unless the transfer is direct. IRA distributions have a default 10% withholding rate that you can opt out of. Whatever actually ended up in Box 4 is what goes on line 25b.
When Box 2a Is Blank or Looks Wrong
If Box 2b is checked, the payer didn’t compute your taxable amount. The usual reason is that you have after-tax money in the account. You still have to put a number on line 4b or 5b, and the mechanism depends on the account type.
For traditional IRA distributions when you’ve made nondeductible contributions, you file Form 8606 with your return. The form uses your total nondeductible contributions and your combined traditional IRA balance to work out what fraction of the distribution is a tax-free return of basis. The IRS treats all your traditional IRAs as a single pool for this ratio, so you can’t isolate the after-tax account. There’s a $50 penalty for failing to file Form 8606 when it was required.7Internal Revenue Service. 2025 Instructions for Form 8606
For employer pensions and annuities with after-tax contributions, the Simplified Method in Publication 575 divides your after-tax investment in the contract by a set number of anticipated monthly payments based on your age when payments began.8Internal Revenue Service. Publication 575 – Pension and Annuity Income The result is the tax-free portion of each payment; the rest is taxable and goes on line 5b. Once you’ve recovered your full after-tax investment, every subsequent payment is fully taxable.
Early Distributions and Form 5329
If Box 7 shows Code 1, you took the money before age 59½ and the payer didn’t apply a known exception. The taxable portion is generally subject to a 10% additional tax on top of regular income tax.9Internal Revenue Service. Hardships, Early Withdrawals and Loans You calculate that penalty on Form 5329, and the result flows to Schedule 2, line 8, of your Form 1040.10Internal Revenue Service. Topic No. 558, Additional Tax on Early Distributions from Retirement Plans Other Than IRAs
When Box 7 already carries an exception code (such as Code 2 for a known exception or Code 3 for disability), you generally don’t need Form 5329. When Box 7 shows Code 1 but you believe an exception applies — death, disability, substantially equal periodic payments, separation from service after age 55 for an employer plan, qualifying medical expenses, higher education costs or a first-time home purchase from an IRA, an IRS levy, and several newer categories added by SECURE 2.0 — Form 5329 is where you claim it with the right exception code.11Internal Revenue Service. Retirement Topics – Exceptions to Tax on Early Distributions Skipping the form when Code 1 appears means the IRS will assume you owe the full 10%. The distribution itself still goes on line 4b or 5b in the normal way; Form 5329 only addresses the penalty.
If the 1099-R Doesn’t Arrive or Is Wrong
Payers have to mail Form 1099-R by January 31.12Internal Revenue Service. General Instructions for Certain Information Returns If yours is missing or has errors, start with the plan administrator and ask for a corrected form. If you still don’t have it by the end of February, call the IRS at 800-829-1040. The agency will contact the payer and send you Form 4852 to use as a substitute.13Internal Revenue Service. Form 4852 Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R
If the filing deadline is near and nothing has shown up, file Form 4852 with your best estimates of the distribution and withholding, attach it to your return, and explain what you did to try to get the original. If a 1099-R later arrives with different numbers, amend the return on Form 1040-X.
One Boundary Worth Noting
Lines 4a/4b and 5a/5b handle the federal reporting. State tax treatment of retirement distributions is a separate question: some states exempt all retirement income, some offer partial exclusions by age or plan type, and some tax it like wages. The state-tax boxes on the 1099-R (14 through 19) feed your state return, not your 1040.14Internal Revenue Service. Instructions for Forms 1099-R and 5498 – Section: Boxes 14-19 State and Local Information Don’t assume the taxable amount you entered on 4b or 5b carries over to the state line unchanged.