@U01rlh00 wrote:
Thank You for your reply, however I have an additional question. With respect to the 1099-R I received from Schwab the amount recorded in Box 1 & 2 does not reflect the correct amount of distribution. These 2 boxes represent the total distribution prior to the dollars that were put back into my 401-K account. This is because the RMD was taken prior to my knowledge that I did not have to take an RMD. The total dollars put back into my 401-K was the total distribution less taxes submitted by Schwab to the IRS.
I was informed by Schwab the a corrected 1099-R would not be issued but at a later date a form 5498 would be issued to reflect this discrepancy.
On Turbo Tax do I enter the correct amount in Box & 2a which would be the amount of the taxes submitted to the IRS? If I enter the incorrect amount (the amt shown on the 1099-R) my income becomes inflated.
Exactly how do I handle this entry to properly reflect what has happened above.
Is the IRA/SEP/SIMPLE box checked on your 1099-R?
If its then this is a Traditional IRA and NOT a 401(k) - it might have been a 401(k) rollover account when it was created, but it is an ordinary Traditional IRA now.
Any tax withheld in box 4 will be applied to your 2020 taxes paid and will add to your refund. If you wanted to roll the entire box 1 distribution back to the IRA then you had to replace the amount of tax withheld with other funds. If you did not do that and and only rolled back the net amount (box 1 minus box 4) then the amount in box 4 will be a taxable distribution.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
