Again, thanks.
The 1099-R for the stock distribution from the 401k looks exactly as you described.
I will try to clarify my question with more details.
I will obfuscate the specific numbers by using a value of $100 as the value of the stock distributed from the 401k.
I distributed company stock worth $100 from my 401k into a taxable brokerage account in August 2024.
I sold all of those shares from the taxable brokerage account for $116 in November of 2024.
There was a dividend of $0.01 paid on the stock while it was in the taxable brokerage account.
I expected to pay “straight” income tax on a total of $116.01.
It appears Turbo tax is calculating tax on a 401k distribution of $100 AND a taxable brokerage sale of $116 (and the $0.01 dividend). I can not figure out how to make Turbo Tax use the $100 401k distribution as the cost basis for the $116 taxable brokerage sale. Alternately, maybe I need a corrected 1099-B for my taxable brokerage account.
More Details:
The 1099-R for the 401k distribution showed:
$100 in box 1 (Gross distribution)
$100 in box 2a (Taxable amount)
$0 in box 6 (Net unrealized appreciation in employer’s securities)
7 in box 7 (Distribution code(s))
Box 13 (Date of payment) was blank
Zeros or blanks in all other boxes (with the exception of name, account number etc kind of info.)
[Matches what I expect.]
The 1099-B for the taxable brokerage account showed:
In the “UNDETERMINED TERM TRANSACTIONS FOR NONCOVERED TAX LOTS”
$116 in line 1d- Proceeds & 6- Reported (G)ross or (N)et
$0 in Cost or other basis
$116 in Gain or loss(-)
The 1099-B also showed the $0.01 dividend.
[Does not match what I expect since I think the cost basis for the sale from the taxable brokerage should be the $100 from the 401k distribution.]
Again, Turbo tax calculated tax on both the $100 distribution from the 401k
and the $116.01 proceeds from the sale from the taxable brokerage account (and the dividend).
I need some way to get the $100 into the cost basis of the sale from the taxable brokerage account. Can I do this in TurboTax or do I need my brokerage to issue a corrected 1099-B for the sale from the taxable brokerage account?
Thank you for your input!
