Solved: 1099-R distribution with indirect rollover

tschindler · Feb 7, 2020 4:08:52 PM

<P>My husband got 1099-R due to a 401K distribution that should not have happened. Financial company never contacted him on how to disperse his 401K when he left a company last year. They just cut him a check. So he took that check and did an in-direct rolled over into a retirement account through his new employer. Well with that disbursement tax of $180 was withheld. It seems that Turbotax is considering the $180 portion that was withheld as taxable and is taking another $18 as tax (10% penalty). Per Turbotax info we should have added $180 to the rollover, but financial company stated that we could not do that as it was not part of the disbursement check. So are we out the $180 tax withheld + $18 for tax penalty or is there a way around this issue? We never got the $180 as it went straight to the federal government. On 1099-R form box 1 and 2a is the same amount $899.54 and, box 4 $179.91, box 7 is 1 and the IRA box is not checked. $719.63 was the amount rolled over. Thanks</P>