Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
Little Steve
Returning Member

1099R

A family member withdrew all their funds from their 401k due to a job loss and financial difficulties. This person rolled their 401k into a traditional IRA within 60 days of 2020 less some cash to cover expenses. She now has a 1099R from the 401k and a 1099R for the money she didn't put into the IRA? It seems like she is being taxed twice? Is this correct?

1 Best answer

Accepted Solutions
CatinaT1
Employee Tax Expert

1099R

I suspect one 1099-R is for the amount she rolled over into the IRA and one is for the amount she actually withdrew.  What are the distribution codes in Box 7?  If there is a code G on one, that signifies it was a rollover and is reportable, but will not be taxed.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

3 Replies
JohnB5677
Expert Alumni

1099R

Did she get one or two 1099-R's. 

 

If she got only one you're all set:

  • If its for the full amount (this is most likely) you will go through the interview and respond YES she did roll it over into another IRA account. You can then indicate that it was a partial rollover.
  • If its only for the smaller amount.  It will be posted and you will indicate that it was used for something else.

If you got two 1099-R's that were both for the same money you will have to get in touch with your HR department, or the 401(k) administrator.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Little Steve
Returning Member

1099R

She received 2. I was just told that she was instructed to put all 401k funds into the IRA and then withdraw what she needed when the 401k funds were received. Was this correct advice? Is she being taxed twice on the same money? I appreciate your help.

Thank you

CatinaT1
Employee Tax Expert

1099R

I suspect one 1099-R is for the amount she rolled over into the IRA and one is for the amount she actually withdrew.  What are the distribution codes in Box 7?  If there is a code G on one, that signifies it was a rollover and is reportable, but will not be taxed.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

Dynamic AdsDynamic Ads
v
Privacy Settings