Yes, you are correct.
Distributions from a 401(k) plan are taxable at the Federal level.
Nine states — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming — have no state income taxes.
Three other states do not tax distributions from 401(k) plans (Illinois, Mississippi and Pennsylvania).
So, box 2a and box 16 (where there is state tax) should eqaul box 1. But just enter your form 1099-R as you receive it and TurboTax will figure the tax.
If you are disabled (code 3 in box 7) you are exempt from the 10% early withdrawal penalty.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
