I have two 1099-R's for the same money. Do I enter both of them in my taxes?

[wita_dr]

I moved my 401K out of the the investment group my prior employer into my own bank and then withdrew the funds immediately thereafter. So I received two 1099-R's. One from the 401K to my bank and the other from my bank liquidated to myself. Do I enter both 1099-R's into my taxes?

[DS30 · Accepted solution]

Yes.

Because you received two 1099-R(s), the IRS will also have received a copy of both 1099-R(s). You will need to report both 1099-R distributions on your tax return

If one is a rollover distribution and one is a withdrawal distribution, the rollover will not be taxed but the withdrawal maybe subject to tax and/or early withdrawal penalty based on your particular situation. Both distributions will be reported on your tax return but only your withdrawal distribution will be taxable.

However, if you meet an exemption, you may be able to avoid the 10% penalty for early withdrawals. See IRS Tax on Early Distribution from a Retirement Plan for information about these exemptions. 

To enter your 1099- R(s) in TurboTax Online or Desktop (you may need to upgrade to report these distributions), please follow these steps:

1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Wages and Income” ("Personal Income" in TurboTax Home & Business)
3. Next click on "jump to full list" or “I’ll choose what I work on”
4. Scroll down the screen until to come to the section “Retirement Plans and Social Security”
5. Choose "show more", then IRA, 401(k),Pension Plans (1099-R) and follow the onscreen instructions

Please note that all distributions will be reported on your tax return (whether or not they are taxable) on Form 1040 on line 15(a) (or 16(a) but only the taxable portion will show on your return as taxable on line 15(b) (or 16(b)).

To preview 1040:

• Sign into https://myturbotax.intuit.com/
• Under Tax Timeline, click on Continue your return
• Go to "My Account" > "Tools"
• Under the Tools Center, select "view tax summary"
• Select "Preview my 1040"