May show an account or other unique number the payer assigned to distinguish your account.
Shows the total amount you received this year. The amount may have been a direct rollover, a transfer or conversion to a Roth IRA, a recharacterized IRA contribution; or you may have received it as periodic payments, as nonperiodic payments, or as a total distribution. This amount will be automatically reported on your tax return.
If a life insurance, annuity, qualified long-term care, or endowment contract was transferred tax free to another trustee or contract issuer, an amount will be shown in this box and Code 6 will be shown in box 7. If a charge or payment was made against the cash value of an annuity contract or the cash surrender value of a life insurance contract for the purchase of qualified long-term care insurance, an amount will be shown in this box and Code W will be shown in box 7. You need not report these amounts on your tax return.
This part of the distribution is generally taxable. If there is no entry in this box, the payer may not have all the facts needed to figure the taxable amount. In that case, the first box in box 2b should be checked.
This amount will be automatically included on your tax return. In some cases, taxpayer may have to determine taxable amount to enter here.
For an IRA distribution, see IRAs and Roth IRAs on this page. For a direct rollover, other than from a qualified plan to a Roth IRA, zero should be shown, and you must enter zero (-0-) on the “Taxable amount” line of your tax return.
If this is a total distribution from a qualified plan and you were born before January 2, 1936 (or you are the beneficiary of someone born before January 2, 1936), you may be eligible for the 10-year tax option. See the Form 4972 instructions for more information.
If you are an eligible retired public safety officer who elected to exclude from income distributions from your eligible plan used to pay certain insurance premiums, the amount shown in box 2a has not been reduced by the exclusion amount.
If the first box is checked, the payer was unable to determine the taxable amount, and box 2a should be blank, except for an IRA. It is your responsibility to determine the taxable amount. If the second box is checked, the distribution was a total distribution that closed out your account.
If you received a lump-sum distribution from a qualified plan and were born before January 2, 1936 (or you are the beneficiary of someone born before January 2, 1936), you may be able to elect to treat this amount as a capital gain on Form 4972 (not on Schedule D (Form 1040)). See the Form 4972 instructions. For a charitable gift annuity, report as a long-term capital gain on Schedule D.
Line 4 - Federal Income Tax Witheld
Shows federal income tax withheld. Include this amount on your income tax return as tax withheld, and if box 4 shows an amount (other than zero), attach Copy B to your return. Generally, if you will receive payments next year that are not eligible rollover distributions, you can change your withholding or elect not to have income tax withheld by giving the payer Form W-4P.
Line 5 - Employee Contributions/Designated Roth Contributions or Insurance Premiums
Generally, this shows the employee’s investment in the contract (after-tax contributions), if any, recovered tax free this year; the portion that is your basis in a designated Roth account; the part of premiums paid on commercial annuities or insurance contracts recovered tax free; or the nontaxable part of a charitable gift annuity. This box does not show any IRA contributions. If the amount shown is your basis in a designated Roth account, the year you first made contributions to that account may be entered in the box next to box 11.
Line 6 - Net Unrealized Appreciation in Employer's Securites
If you received a lump-sum distribution from a qualified plan that includes securities of the employer’s company, the net unrealized appreciation (NUA) (any increase in value of such securities while in the trust) is taxed only when you sell the securities unless you choose to include it in your gross income this year. See Pub. 575 and the Form 4972 instructions. If you did not receive a lump-sum distribution, the amount shown is the NUA attributable to employee contributions, which is not taxed until you sell the securities.
The following codes identify the distribution you received. For more information on these distributions, see the instructions for your tax return. Also, certain distributions may be subject to an additional 10% tax. See the instructions for Forms 5329.
1- Early distribution, no known exception (in most cases, under age 59Ѕ).
2 - Early distribution, exception applies (under age 59Ѕ).
6 - Section 1035 exchange (a tax-free exchange of life insurance, annuity, qualified long-term care insurance, or endowment contracts).
8 - Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2013.
9 - Cost of current life insurance protection.
A - May be eligible for 10-year tax option (see Form 4972).
B - Designated Roth account distribution. Note. If Code B is in box 7 and an amount is reported in box 10, see the instructions for Form 5329
D - Annuity payments from nonqualified annuities that may be subject to tax under section 1411.
E - Distributions under Employee Plans Compliance Resolution System (EPCRS).
G - Direct rollover of a distribution (other than a designated Roth account distribution) to a qualified plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA.
H - Direct rollover of a designated Roth account distribution to a Roth IRA.
J - Early distribution from a Roth IRA, no known exception (in most cases, under age 59Ѕ).
K - Distribution of IRA assets not having a readily available FMV.
L - Loans treated as distributions.
N - Recharacterized IRA contribution made for 2014 and recharacterized in 2014.
P - Excess contributions plus earnings/excess deferrals taxable in 2013.
Q - Qualified distribution from a Roth IRA.
R - Recharacterized IRA contribution made for 2013 and recharacterized in 2014.
S - Early distribution from a SIMPLE IRA in first 2 years, no known exception (under age 59Ѕ).
T - Roth IRA distribution, exception applies.
U - Dividend distribution from ESOP under sec. 404(k). Note. This distribution is not eligible for rollover.
W - Charges or payments for purchasing qualified long-term care insurance contracts under combined arrangements.
If the IRA/SEP/SIMPLE box is checked, you have received a traditional IRA, SEP, or SIMPLE distribution.
If you received an annuity contract as part of a distribution, the value of the contract is shown. It is not taxable when you receive it and should not be included in boxes 1 and 2a. When you receive periodic payments from the annuity contract, they are taxable at that time. If the distribution is made to more than one person, the percentage of the annuity contract distributed to you is also shown. You will need this information if you use the 10-year tax option (Form 4972). If charges were made for qualified long-term insurance contracts under combined arrangements, the amount of the reduction in the investment in the annuity or life insurance contract is reported here.
Line 9a - Your Percentage of Total Distribution
If a total distribution was made to more than one person, the percentage you received is shown.
Line 9b - Total Employee Contributions
For a life annuity from a qualified plan or from a section 403(b) plan (with after-tax contributions), an amount may be shown for the employee’s total investment in the contract. It is used to compute the taxable part of the distribution. See Pub. 575.
Line 10 - Amount Allocable to IRR within 5 Years
If an amount is reported in this box, see the instructions for Form 5329 and Pub. 575.
Line 11 - 1st Year of design Roth Contribution
The 1st year you made a contribution to the designated Roth account reported on this form is shown in this box.