401k restoration plan

[NurseNancy43]

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.

[DaveF1006]

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.

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