Form 1099-R can be entered in Drake Tax in a few different ways depending on the details of the distribution. The preparer must determine which of the following data entry options should be used to properly report the distribution or rollover. See the Form 1040 Instructions for details.

Watch the video Roth Distributions and Rollover for a demonstration.

1099-R screen

Use screen 1099 to enter data from Form 1099-R. Enter the Gross distribution and Taxable amount, and select the appropriate codes for box 7 Dist code.

Rollover Information

If a 1099-R distribution was rolled over into another qualified plan and should be excluded, choose the applicable code in the Rollover into another qualified plan drop list:

• C - IRA converted to Roth IRA, carried to line 16 of Form 8606 (selection available starting in Drake Tax 2023)

• G - Taxable direct rollover to Roth, reported directly on Form 1040

• S - Rolled over into the same type of account

  • This makes the word ROLLOVER display on the IRAs, pensions, and annuities or IRA Distributions lines of Form 1040.

• X - Rolled over into another plan

If only a portion of the amount was rolled over, use the Partial rollover amount box.

Additional Information for this Distribution

Mark the applicable items under Additional Information for this Distribution if more information is needed for the distribution such as penalty computations or exceptions, Roth conversions, backdoor IRAs, or other retirement account situations that involve other tax forms. Press F1 for more information on each available option, and see Drake Tax - 1099-R - Additional Information Check Boxes. Two options that may be useful for a Roth Distribution are:

• Carry this entry to Form 5329 and compute 10% penalty or exception

  • Select this box if there are no exceptions for the 10% penalty to be figured for the distribution. If exceptions apply, leave this box blank and complete the screen for Form 5329, Additional Taxes on Qualified Plans. If only part of the taxable amount qualifies for an exception, do not mark this box; instead, use the 5329 screen.

• Excluded here; distribution is reported on Form 8606/ROTH

  • Select this box to indicate that this distribution is being reported on Form 8606, Nondeductible IRAs. Marking this box does not force the distribution information to flow to Form 8606, rather it is used to assure that this distribution is not reported as income on Form 1040. The amounts must be entered and the questions answered as appropriate for this distribution on the 8606 and/or ROTH screen.

Special Tax Treatments

Use the Special Tax Treatments tab to enter information about qualified charitable distributions, HSA funding distributions, public safety officers (PSO), and to include the Simplified General Rule Worksheet.

Screen 3

For IRA and pension distributions that were not reported on Form 1099-R, enter total and taxable portions of these amounts on income Screen 3.

Roth Screen

Use the ROTH screen to make entries for Form 8606, parts II and III as needed to report Roth IRA conversions, distributions, and contributions. Entries on this screen may be needed if you select the option Excluded here; distribution is reported on Form 8606/ROTH on the 1099 screen.

If the return has a filing status of MFJ, and the taxpayer and spouse each qualify for a Roth contribution, you will need to enter separate ROTH screens for the taxpayer (T) and the spouse (S). This creates two worksheets that calculate the contributions separately for each the taxpayer (T), and the spouse (S). If you do not create separate ROTH screens for the taxpayer (T) and spouse (S), and only create one ROTH screen and enter the max yearly contribution and mark the screen joint (J), the worksheet limits the total contribution to the yearly amount for a single spouse instead of for two taxpayers.

Max contribution amount per taxpayer per year:

• 2023: $6,500 ($7,500 if age 50 or older)

• 2019-2022: $6,000 ($7,000 if age 50 or older)

A ROTH basis worksheet Wks ROTH_BAS can be produced by making an entry in the Roth IRA Basis Worksheet section of the ROTH screen. This allows you to track basis from year to year to determine how much of future distributions will be taxable. In order to track basis, the current basis must be entered on the ROTH screen.