Hi TiaDav718
I am sorry for your loss. You will receive a Form 1099R by January 31, 2024. The Form 1099R will show key information that you will enter in your TurboTax account when you prepare your 2023 tax return. One of the items on the Form 1099R is Box 7, which is a code that will indicate the type of distribution.
The 20% that is being withheld is an estimate of taxes. Of course it is not known at this point your other income for 2023 and your tax rate. Similar to working a job and you have tax withheld from your wages each pay period, they are basically "set aside" for you to pay your taxes when you file your tax return.
Once you receive your Form 1099R, along with your other tax documents, you will prepare your 2023 tax return. You will enter all your income, including the distribution reported on the Form 1099R, then your tax liability is calculated, and the withholdings from all your sources decrease your tax liability.
If withholdings from all sources are greater than your tax liability, you will receive a tax refund.
You are not required to submit additional information with your tax return; based on entering the Form 1099R TurboTax will generate your tax return.
I hope you find this helpful!
Connie
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
