Distributions from foreign retirement plan

Forum|Forum|1 year ago
July 20, 2024
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When reporting the distributions from foreign retirement plan as a manually entered 1099-R (which is not provided by most foreign retirement plans), it asks for the 'Distribution Code', which is a required field in TurboTax online. Which code should one use?

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Best answer by pk12_2

@rickard , all same number EION will not work --- I usually suggest an obvious dummy EIN ( if blank is not accepted by the software ) such as 23 - 1234567 or 12-3456789 or something similar.

That is way I would do it -- not as other income.

pk12_2

Employee

@rickard , if you download and print the form 100-R from www.irs.gov, you will see all the codes listed. Use appropriate one (s) to fill out this dummy 1099-R. This will satisfy the software and meet IRS requirements for recognizing and taxing of the income ( foreign source pension ). Also if the foreign taxing authority taxes this income then depending on the exact facts and circumstances ( country, type of pension etc. etc. ) this tax may be eligible for double tax amelioration ( foreign tax credit / deduction ).

Is there more I can do for you ?

rickardAuthor

Thanks for your quick answer. I tried entering the distribution from the foreign retirement plan as a 1099-R, as recommneded by some threads, with dummy figures 9s as as the payer ID. However, during TurboTax Review of the return, prior to filing, it prompts an error with "You must enter a valid employment identification number". It doesn't accept 9s. So the option of entering the distribution as a 1099-R doesnt' seem to work. Can you please confirm and is there another alternative of how to enterring it and then deduct the income from the state return?

pk12_2Answer

Employee

@rickard , all same number EION will not work --- I usually suggest an obvious dummy EIN ( if blank is not accepted by the software ) such as 23 - 1234567 or 12-3456789 or something similar.

That is way I would do it -- not as other income.