A "highly compensated employee audit" measures the 401K contributions of "highly compensated employees" against not-highly-compensated employees. If that proportion is too high, the HCEs have to take a distribution.
I received a distribution for $X and a check for $X - deducted taxes. I got a 1099-R for $X (deducted taxes). Box 2a says the entire $X is taxable.
However when I am at Deductions & credits=> Retirement income results, it says the Taxable amount is $0. This concerns me that Turbo Tax is doing something inaccurate.
(I would like to not go to jail please).
