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Level 2
posted Feb 11, 2025 5:14:00 PM

1099-R possibly incorrect

I take RMDs from an old 401k plan. Normally I receive a 1099-R listing the amount in Box 1 Gross Distribution and Box 2a Taxable amount. No boxes are checked. For 2024, I took my RMD as usual and the former employer moved the 401k to a new administrator at year end. I received the 1099-R with box 1 and 2a listing the RMD amount. However, the Total Distribution box was checked. IMHO, the box should not be checked because it does not relate to the amount in Box 1. I called the old administrator who checked with the “back office”. They say the box was checked because the account balance was 0 at year end.

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3 Best answers
Expert Alumni
Feb 11, 2025 5:28:51 PM

Since the Form 1099-R reports only the amount that was distributed to you in box 1, I agree that it shouldn't indicate that it was a total distribution. However, that box is entered more for your information than for the purpose of affecting your tax return, so it shouldn't cause a problem with the calculations on your return when you enter it in TurboTax.

Level 2
Feb 11, 2025 6:00:10 PM

  • Thank you! I’m happy to hear we’re okay for the 2024 return. I am still afraid there may be future issues since it appears the account was emptied but now there is a large amount of money in another 401k. It’s becoming almost impossible these days to speak with knowledgeable people at any organization. Such a frustrating situation. Thanks again for your input! 

Expert Alumni
Feb 11, 2025 6:10:52 PM

It shouldn't be a problem going forward, as long as you take the required minimum distributions each year and when you enter your Form 1099-R in TurboTax, indicate that you took them.

4 Replies
Expert Alumni
Feb 11, 2025 5:28:51 PM

Since the Form 1099-R reports only the amount that was distributed to you in box 1, I agree that it shouldn't indicate that it was a total distribution. However, that box is entered more for your information than for the purpose of affecting your tax return, so it shouldn't cause a problem with the calculations on your return when you enter it in TurboTax.

Level 2
Feb 11, 2025 6:00:10 PM

  • Thank you! I’m happy to hear we’re okay for the 2024 return. I am still afraid there may be future issues since it appears the account was emptied but now there is a large amount of money in another 401k. It’s becoming almost impossible these days to speak with knowledgeable people at any organization. Such a frustrating situation. Thanks again for your input! 

Expert Alumni
Feb 11, 2025 6:10:52 PM

It shouldn't be a problem going forward, as long as you take the required minimum distributions each year and when you enter your Form 1099-R in TurboTax, indicate that you took them.

Level 2
Feb 11, 2025 7:17:54 PM

Thanks much!