401k restoration plan

I received a payment of $79.57 from a restoration plan associated with my 401K. I received the payment because I made more money during my years of service. It was designed to compensate my 401k. I received the money one year after I retired. I got a check in July 2021. Do I need to enter that amount somewhere? I made $19.61. My balance in April 1, 2020 was $59.96 and then by the following year 03/31/21 the balanace was $79.57.

438

Expert Alumni

Feb 25, 2022 8:03:47 PM

Yes, since it was a distribution associated with your 401K plan, it does need to be reported as income on your return. Here is how to report.

Go to federal>income and expenses>all income>>show more
Less Common Income> Start
Miscellaneous Income,>start
Other reportable income>start
Next screen asks Any Other Taxable Income>yes
The next screen will allow you to report the income with a brief explanation.
In the explanation, write restoration plan payment from 401K account and then record the $79.97 payment.

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401k restoration plan