When you receive a distribution from a retirement account, pension, annuity, or IRA, the payer issues Form 1099-R to report that distribution to both you and the IRS. One of the most critical pieces of information on this form is found in Box 7: the distribution code. Section references are to the Internal Revenue Code unless otherwise noted. that are not from an IRA, SEP, or SIMPLE are reported on Form 1040, line 1h, Other Earned Income. It tells the IRS that money moved out of an account.
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