IRA Distributions

Enter amounts received from IRA distribution which will be reported to you on Form 1099R.

In general, all withdrawals from a regular, deductible IRA account are fully taxable and reported on Line 15b of Form 1040, or Line 11b of Line 1040A.

However, if you made any nondeductible contributions to IRAs over the years, a portion of your withdrawal will be treated as a withdrawal of the nontaxable cost basis of your IRAs, and no tax or penalties will apply to this portion.

If you've ever made nondeductible contributions to any of your IRAs, then whenever you take a distribution from a non-Roth IRA, part of the distribution will be treated as coming from the nontaxable part.

You must compute the taxable and nontaxable portions of the withdrawals by completing IRS Form 8606, Nondeductible IRAs, and attaching it to your tax return. This can be a complicated process, so make sure that you follow the instructions to the form very closely.