User's Manual - Drake Software

Drake Software User’s Manual
Retirement Income
Figure 5-17: Adjustment fields for IRA and pension distributions (screen 3)
These amounts are calculated with the corresponding amounts from the 1099 and
8606 screens and carried to the “IRA distributions” and “Pensions and annuities” lines
of Form 1040. Do not duplicate entries made on the 1099 or 8606 screens.
NOTES
Mark the applicable check box on this screen to have the program calculate
the penalty early distribution of the taxable portion of IRA distributions
(line 15b) or pensions (line 16b) entered.
If the taxpayer did not receive a 1099-R for a pension, annuity, or IRA
distribution, the return cannot be e-filed.
Substitute
1099-R
Rollover of
Pensions/
Annuities
To file a substitute 1099-R (Form 4852), refer to “Substitute W-2, 1099-R” on
page 104.
If a 1099-R distribution should be excluded from income because it was rolled over
into another qualified plan, indicate this using the Exclude from income drop list on
the 1099 screen (under the Rollover Information heading; see Figure 5-18).
501(c)(18) Contributions
IRA Contributions
Figure 5-18: Selections for rolled-over 1099-R distribution
Select S if the distribution was rolled over into the same type of account. Select X if it
was rolled over into another plan. If S is selected, the word “ROLLOVER” is displayed
on “Pensions and annuities” line of Form 1040.
Enter contributions to a 501(c)(18) pension plan on screen 4, but do not include
amounts that have been assigned Code H (“elective deferrals to a section
501(c)(18)(D) tax-exempt organization plan”) in box 12 of the W-2. Those amounts
are carried automatically from the W2 screen to Form 1040.
For traditional IRA contributions, use the 8606 screen, which addresses Part I of
Form 8606, Nondeductible IRAs. For Roth IRA contributions, use the ROTH screen,
which addresses Parts II and III of Form 8606.
Tax Year 2012 119