How to Report IRA Withdrawals on a Tax Return

Any time you tap your individual retirement arrangement to get money out, you'll have to share the news with the Internal Revenue Service, even if you don't owe any taxes as a result. At the end of the year, you'll receive a Form 1099-R from your financial institution that gives the details of your distribution. Qualified distributions avoid any extra taxes and penalties. When you take a non-qualified distribution from your IRA, you might owe additional tax penalties. Use Form 1040 or Form 1040A if you are taking a qualified distribution from your IRA. Use Form 1040 if you owe an early withdrawal penalty.

Traditional IRA Distributions

Step 1

Report the total amount of the traditional IRA distribution as the taxable amount of your IRA distribution unless you made nondeductible contributions. On Form 1040, it goes on line 15b. If you're using Form 1040A, report it on line 11b. If you've made nondeductible contributions, calculate the taxable portion of the distribution with Form 8606. Then, report the total distribution as an IRA distribution on line 15a of Form 1040 or line 11a of Form 1040A, and report the taxable portion on line 15b of Form 1040 or line 11b of Form 1040A.

Step 2

Calculate your early withdrawal penalty, or document your exception from the penalty, using Form 5329 if you're under 59 1/2 years old when you took the distribution.

Step 3

Report the early withdrawal penalty, if any, on line 58 of Form 1040. This increases your taxes due.

Step 4

Report the withholding, if any, from your withdrawal on line 62 of Form 1040. You can find this amount in box 4 of your Form 1099-R. This decreases your taxes due or increases your refund.

Roth IRA Distributions

Step 1

Report the entire amount of the Roth IRA distribution as an IRA distribution, regardless of how much, if any, is taxable. If you're using Form 1040, it goes on line 15a; if using Form 1040A, it goes on line 11a.

Step 2

Calculate the taxable portion of your Roth IRA withdrawal using Form 8606. If you are taking a qualified distribution from your Roth IRA, you don't have to figure the taxable portion because the distribution is completely tax-free.

Step 3

Report the taxable amount of your Roth IRA distribution as the "Taxable amount." If you're using Form 1040, it goes on line 15b; if using Form 1040A, it goes on line 11b.

Step 4

Figure the early withdrawal penalty using Form 5329 if any of your non-qualified Roth IRA distribution is taxable. This only occurs if you are taking out earnings from your Roth IRA because withdrawing contributions isn't taxable. Also, if you have an exception to the penalty, such as higher education expenses, document it on Form 5329.

Step 5

Report the penalty from Form 5329 on line 58 of Form 1040. This increases your tax liability.

Step 6

Report the withholding, if any, from your withdrawal on line 62 of Form 1040. You can find this amount in box 4 of your Form 1099-R. This decreases your taxes due or increases your refund.

Items you will need

  • IRS Form 1040 or 1040A
  • IRS Form 5329

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About the Author

Mark Kennan is a writer based in the Kansas City area, specializing in personal finance and business topics. He has been writing since 2009 and has been published by "Quicken," "TurboTax," and "The Motley Fool."

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