The company i worked for got bought and i cashed out my profit sharing what box do i check

[pacificislander_]

The company i worked for got bought out July 1,2016 and i cashed out my profit sharing. I filled out all my information for 1099R form but do i put as an explanation for why i cashed out.

[Fern · Accepted solution]

The list of reasons on the screen "Did you use your IRA to pay for any of these expenses?" can only be used if you actually paid for any of the listed items. These categories are being asked to see if you qualify for an exclusion from the penalty tax for an early withdrawal. If none apply, leave them blank as select Continue.

If you did not roll the amount over to another retirement account, you will include the distribution in taxable income. Additionally, if you are under age 59 1/2, and do not qualify for one of the exclusions, you will have a penalty tax of 10% of the distribution included in your tax computation.