What this line means
The total gross distributions from pensions, annuities, profit-sharing plans, and employer retirement plans like 401(k)s and 403(b)s. This is Box 1 from every 1099-R with a distribution code indicating a pension or annuity payment — not IRA distributions, which go on line 4a.
Does this apply to you?
- You receive monthly pension payments from a former employer
- You took distributions from a 401(k) or 403(b) plan
- You receive annuity payments from an insurance company
- You received a lump-sum distribution from a retirement plan
- You rolled over a 401(k) to an IRA or another employer plan
Easy to overlook
Pension income is separate from IRA distributions on your return Pension and 401(k) distributions go on lines 5a/5b. IRA distributions go on lines 4a/4b. They use different 1099-R distribution codes. Filers who receive both a pension and IRA distributions sometimes combine them on one line, triggering an IRS mismatch because the 1099-R forms report them separately. 1 IRS Publication 575 — Pension and Annuity Income
Rollovers still appear on line 5a If you rolled your 401(k) into an IRA, the plan administrator reports the full distribution on 1099-R Box 1. Report the gross amount on line 5a and the taxable amount (zero for a complete rollover) on line 5b. Omitting the rollover from line 5a makes it look like unreported income. 2 General filing pattern — 1099-R Box 1 vs Box 2a confusion
Watch out for this
Using 1099-R Box 2a (taxable amount) on line 5a instead of Box 1 (gross distribution). Line 5a is the gross amount. Line 5b is the taxable amount. Swapping them understates the gross distribution and creates a discrepancy with the 1099-R the IRS has on file.
Footnotes
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IRS Publication 575, Pension and Annuity Income. https://www.irs.gov/pub/irs-pdf/p575.pdf ↩
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IRS Publication 575, Pension and Annuity Income, Rollovers. https://www.irs.gov/pub/irs-pdf/p575.pdf ↩