My previous employer made a small contribution to my 401k before I left the company, then took it back since I wasn't vested. I have a 1099-R for this contribution and on the 1099-R Box 7 it has a 1B. Box 9b for Total Employer Contributions is blank. After filling in PA State Tax information in Turbo Tax, I get a 'Check This Entry' message that says:
Gross Compensation Worksheet: Basis in retirement plan PA is marked as rollover; however, Federal is marked 1 (not a rollover), enter cost or recovery basis or enter 0.
On the federal form I entered a 1 and a B, but the state form only shows the first code of 1. The Gross Distribution on the worksheet has a 0. I need to enter a value for the Basis. Can I enter 0 in that field?
I don't know if it's important to mention, but I did do a rollover of funds that I contributed from the previous employer and the Gross Distribution field for that entry has the correct amount that I rolled over in it.
