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I believe there is an error with Turbotax 2024 when trying to enter a 401k distribution as an inherited 401k

 
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1 Reply
dmertz
Level 15

I believe there is an error with Turbotax 2024 when trying to enter a 401k distribution as an inherited 401k

It's doubtful that TurboTax is making any error with respect to this entry.  Why do you think there is an error?

 

A distribution from an inherited 401(k) will include code 4 in box 7 and will not have the IRA/SEP/SIMPLE box marked.

 

In general, the amount from box 1 of the Form 1099-R should be included on Form 1040 line 5a and the taxable amount from box 2a should be included on line 5b.  If the problem is that TurboTax is generating a penalty for failure to complete the entire RMD for the inherited account, make sure that when entering this Form 1099-R that you indicate as the required RMD only the amount of RMD for this inherited account.

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