Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Income — Retirement Income Workout

Skills Workout

Certification Warm Up: Drill & Practice

  1. Rhonda received distributions from a retirement plan that was funded by her before-tax contributions. Assuming age and waiting period requirements are met, is this retirement income taxable?
  2. Julio contributed $500 a year to a traditional IRA. Each year, he deducted these contributions from his income. This year he received his first distribution from the traditional IRA. Is his distribution taxable?
  3. Are qualified Roth IRA distributions taxable?
  4. Wendell worked 30 years for a construction company. Each week, he contributed to the Carpenter's Pension Plan. Every year, Wendell paid tax on the gross amount of his salary, including his pension contribution. Wendell has now retired and receives distributions from the plan. Is this fully taxable?
  5. Carla changed jobs and received Form 1099-R from her previous employer. The gross distribution amount in box 1 is $11,200. Carla deposited the entire $11,200 into her IRA within 30 days of receiving the check (rollover). Is this taxable?
  6. Keith worked for a software development company for 20 years. He retired and began receiving pension income the same year. Keith never contributed to the pension plan while he was working; his employer made all of the contributions. Is this taxable?
Pub 4491, Retirement Income Lesson
Pub 4012 1099-R
Form 1099-R

Pub 4491, Retirement Income Lesson

Pub 4012 Form 1099-R

Form 1099-R