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pedrop28
New Member

How do I submit Form1099-R with a Percentage Distribution (9a) less than 0.01?

I am in the process of getting 401K funds (old employer's) rolled-over to a new account (new employer's 401K). The first attempt did not work due to my employer's policy so I now have a check in my hands that is written by the new 401K service provider returning the money to the old 401K service provider with my name as the benefactor. Ultimately, this fund will end up in an IRA but that has not yet been resolved.

As I am filing taxes and because of this distribution, I received a 1099-R form displaying the total amount distributed (1) but shows $0 as taxable amount (2a), total distribution marked (2b), $0 in capital gains (3), $0 in federal tax withheld (4) and zero in all other  fields.

At the moment I am trying to enter this form manually, but the tool that I am using (TurboTax) will not allow me to enter 0% as percentage of total distribution in box 9a because it is below the accepted minimum value of 0.01.

How do I submit this form and ensure I am filing all the necessary information?
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1 Reply
dmertz
Level 15

How do I submit Form1099-R with a Percentage Distribution (9a) less than 0.01?

Except in the case of a distribution to multiple beneficiaries of an inherited 401(k), there should be no entry in box 9a for a distribution from a 401(k).  Leave it blank.  Enter the Form 1099-R exactly as received.

You didn't mention it, but there is likely code G in box 7.

Presumably this is being treated as a direct rollover from the original plan back to itself.  That's a bit unusual, but probably will not raise any issues.

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