Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Mar 8, 2021 5:47:00 PM

How do i spread my 401k distribution across 3 years? my 1099-r has incorrect reason in box 7

current distribution code is

0 3 1114
3 Replies
Expert Alumni
Mar 8, 2021 7:48:08 PM

If your pension distribution is coded as being taxable, you will see a screen in TurboTax that says Was This a Withdrawal due to COVID-19 or a Qualified Disaster Distribution? after you enter your form 1099-R When you indicate that it is, then you will see the option to spread the taxable amount over three years. 

 

If your distribution has a wrong code in box 7, you will have to request a corrected form from the issuer.

Returning Member
Mar 8, 2021 7:53:30 PM

I have the same problem. The screen ,

    Does [name] want to pay all the tax this year? Click Continue and the taxation of your distribution will be spread over three years.

Never appears.

Expert Alumni
Mar 8, 2021 8:04:59 PM

If you want to spread the tax, do not put a checkmark in the box that says ''I want to pay all of the tax in 2020''.  When you click Continue, you should be done.   TurboTax should only include 1/3 of the total distribution on Form 1040, but you won't see Form 8915-E when you are entering the 1099-R.    If TurboTax isn't treating your covid-related distribution correctly, use the link in the article below to sign up for notifications.   

 

Why do I still get 10% penalty on the withdraw of my retirement even though I answer the questions correctly?     @novodka44