What happened to that stock? Is it now in a regular brokerage account? What boxes on the 1099-R contain dollars? What boxes and how much?
ESOP was money in my retirement. When I turned 62 they made me take a full distribution into stock. Gross distribution 453892.20, taxable amount 30,369.12 normal distribution. Net realized appreciation in employers securities. 423,523.08. Right now it says I owe 30 k in taxes. But this is a non public company and it’s in stock in the company. Thank you. I was on hold for over an hour to speak to someone. He asked me to reboot TT. I lost him. He never called me back. And marked my case closed. I see nothing in the 1099 r section for ESOP accounts
So Box 1 has the $453,892. 20, Box 2a has the $30,369.12 and Box 6 has the $423,523.08, right?
ASSUMING that the stock wasn't rolled over into an IRA, (I should have asked for the codes in Box 7), then it's only the $30,369.12 that's taxable, not the $453,892. 20. There's nothing in the 1099-R interview that explicitly refers to an ESOP except for one box that mentions "dividends" received from an ESOP; it's just dealing with the 1099-R itself which is pretty much agnostic about what kind of retirement plan made the distribution.
This distribution, in and of itself, wouldn't create a $30K tax liability.
Away from taxes, I'd think that you could have chosen to have the stock bought back from you, but that you decided to take the distribution "in kind", hoping for a bigger payday down the road?
Tom Young
Tom, This is my retirement, so I didn’t want to sell it. That being said...WHERE in turbo tax do I enter this???
You use the "IRA, 401(k), Pension Plan Withdrawals (1099-R)" interview and simply enter the 1099-R as it reads. Only the $30,369.12 will be included in taxable income.
I did that and it was using the higher number. Like a cash out.
I'm away from my computer at the moment and I will test it out when I get back. What's the code or codes in Box7?
First suggestion is to delete the entry and try again.
I’m not at home. I will respond when I get home. I did delete it. When I did that 15k went away
Umm... What $15K? You mentioned a $30K tax liability which would be too high if that was the change resulting from entering $30K of income and too low from entering $453K of income. But if deleting the 1099-R changed the tax liability by $15K, that's in the realm of possibities.
I cashed out 2500 1099b for 103k to help pay for the taxes and invest. Where I am getting stuck is the ‘what did you do with the money ‘ my former company bought the company stock with it. So It didn’t get rolled over into an IRA, or another retirement account Didn’t convert it to a Roth IRA. I am freaking out cause the guy I spoke with from TT last night didn’t have a clue, got disconnected. And no one called me back.
Entering a 1099-B wouldn't bring up the question "what did you do with the money"? That comes up only with the entry of a 1099-R."
"I cashed out 2500 1099b for 103k..."
That's not particularly clear. What does that really mean in full English sentences?
If you're talking about a sale of some of the stock that was distributed out of the ESOP, that WOULD be a taxable event, but if you're getting that "what did you do with the money" question it sounds like you're trying to enter a 1099-B in the 1099-R interview, And I really don't understand that statement "my former company bought the company stock with it." If YOU sold some stock, which appears to be the case, what's the "former company" doing with the proceeds.
I think it's time to gather up your information and perhaps seek some local professional help where somebody can actually see what you're talking about.
BTW, I entered that 1099-R in my own income tax return and got a tax bump of about $7-8K which seems about right for my tax bracket given $30K of "ordinary" income. Of course I had to guess at the code(s) in Box 7.
Tom, 2 different things. 1099b entered already for purchased stock. 1099r not entered because when I get to the question ‘what did I do with the money ‘? Publix(my former company that held my ESOP) turned my ESOP into stock and I don’t see that answer. Perhaps you are right to seek local help. It’s sad that turbtax doesn’t allow me to use them
When you entered the 1099r that gave you the 7-8 bump what did you choose for what did you do with the money? I did in a previous comment tell you box 7 was 7 normal distribution.
Thank you