ThomasM125
Expert Alumni

Retirement tax questions

If the withdrawal was a correction distribution to reverse the contributions you made in 2024 to apply to that year, then you should report the earnings in 2024. You can do that on your 2024 return if you haven't filed it yet. You will need to prepare a substitute Form 1099-R for your 2024 return as follows:

 

To enter a substitute form 1099-R in Turbo Tax Desktop follow these instructions:

 

  1. Find the Retirement Plans and Social Security menu option in the Wages and Income section of TurboTax
  2. Start or Update IRA, 401(k), Pension Plan Withdrawals (1099-R)
  3. Choose Add (Another) 1099-R
  4. Choose I'll type it in myself
  5. On the screen that says Tell Us Which 1099-R You Have choose I need to prepare a Substitute 1099-R

 

To enter a substitute form 1099-R in Turbo Tax Online follow these instructions:

 

  1. Find the Retirement Plans and Social Security menu option in the Wages and Income section of TurboTax
  2. Start or Update IRA, 401(k), Pension Plan Withdrawals (1099-R)
  3. Choose Add (Another) 1099-R
  4. Choose I'll type it in myself
  5. Choose the source of your 1099-R form
  6. Enter your pension income into the Form 1099-R entry screens
  7. When you come to the screen that says Do any of these situations apply to you? Check the box that says I need to file a substitute 1099-R and follow the instructions

For the entries:

 

  1. Enter the distribution amount in box 1 of the substitute 1099-R
  2. Enter the earnings in box 2(a)
  3. Enter code "8" in box 7 (And code "J" if from ROTH IRA)

 

You are subject to interest and penalties on late payment of income taxes on an amended return.

 

 

 

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