1099R and Covid

Forum|Forum|5 years ago
March 30, 2021
2 replies
29 views

I took a 401K withdrawal in the amount of $100,000 in 2020. The code on the 1099-R is a 1. I was told that I do not have to pay the penalty on it and that I can pay the tax over 3 years. What do I need to do to do that?

TurboTax Self Employed Online

macuser_22

Alumni - Champ

Enter the 1099-R and answer yes that it was a COVID related distribution and answer the rest of the questions.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

DoninGA

Level 15

Enter the Form 1099-R that you received. Then answer the follow-up questions and indicate the distribution was due to Covid-19. If you are eligible the program will remove the 10% early distribution penalty and offer you the option to either have the distribution entered in its entirety on the 2020 federal tax return or to have the distribution split into 1/3 over three years.

Enter 1099-r in the Search box located in the upper right of the program screen. Click on Jump to 1099-R