Gains or losses within a 401(k) retirement account are not reported on a tax return.
A distribution from a 401(k) is reported to you on Form 1099-R. The taxable amount of the distribution shown in box 2a of the form is entered on your tax return as ordinary income and taxed at your current tax rate.
The 401(k) plan administrator will send you a Form 1099-R in January 2023 for distributions made to you in 2022.
To enter, edit or delete a form 1099-R -
- Click on Federal Taxes (Personal using Home and Business)
- Click on Wages and Income (Personal Income using Home and Business)
- Click on I'll choose what I work on (if shown)
- Scroll down to Retirement Plans and Social Security
- On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button
Or enter 1099-r in the Search box located in the upper right of the program screen. Click on Jump to 1099-R
