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February 12, 2025
Question

1099-R

  • February 12, 2025
  • 1 reply
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1099-R- If I pre-paid for my insurance before I receive my retirement payment, should that be automatically deducted in box 5.  I never received that money.   

    1 reply

    JohnB5677
    February 12, 2025

    Yes, if there is a basis, or non taxable portion of the 1099-R, it will be reflected in Box 5.

     

    Box 5. Generally, this shows the employee’s investment in the contract (after-tax contributions), if any, recovered tax free this year; the portion that’s your basis in a designated Roth account; 

     

    the part of premiums paid on commercial annuities or insurance contracts recovered tax free

     

    the nontaxable part of a charitable gift annuity; or the investment in a life insurance contract reportable under section 6050Y. This box doesn’t 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 box 11.

     

    Please refer to IRS 1099-R instructions for Box 5.

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