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New Member
posted Feb 28, 2021 11:24:39 AM

I took a COVID Related Distribution from my 401k. I input the first 1099-R and designated it a CRD (no penalty tax). But TurboTax wont give me the option for the 2nd one

Is this a software error?

0 4 952
1 Best answer
Expert Alumni
Feb 28, 2021 11:35:32 AM

What is the code in box 7 for the second 1099-R?

 

 

Please follow these steps to use the workaround discussed in 1099R Coronavirus Exception Issue to enter your 1099-R if you have code B1 in box 7:

  1. Login to your TurboTax Account 
  2. Click on the Search box on the top and type “1099-R”
  3. Click on “Jump to 1099-R” and enter all 1099-R information, enter code "1" but do not enter code "B" in box 7
  4. Continue until "Tell us if any of these uncommon situations apply" screen
  5. Select "I took out this money because of a qualified disaster (includes COVID-19)"
  6. Answer all questions in regards to the COVID distribution to trigger that you qualify for the Qualified Disaster Retirement treatment.
  7.  On the “Review your 1099-R info” screen click "edit" and add code "B" to the 1099-R Form entry.
  8. When you continue the COVID questions are still accessible

 

4 Replies
Expert Alumni
Feb 28, 2021 11:35:32 AM

What is the code in box 7 for the second 1099-R?

 

 

Please follow these steps to use the workaround discussed in 1099R Coronavirus Exception Issue to enter your 1099-R if you have code B1 in box 7:

  1. Login to your TurboTax Account 
  2. Click on the Search box on the top and type “1099-R”
  3. Click on “Jump to 1099-R” and enter all 1099-R information, enter code "1" but do not enter code "B" in box 7
  4. Continue until "Tell us if any of these uncommon situations apply" screen
  5. Select "I took out this money because of a qualified disaster (includes COVID-19)"
  6. Answer all questions in regards to the COVID distribution to trigger that you qualify for the Qualified Disaster Retirement treatment.
  7.  On the “Review your 1099-R info” screen click "edit" and add code "B" to the 1099-R Form entry.
  8. When you continue the COVID questions are still accessible

 

New Member
Feb 28, 2021 11:43:39 AM

The code is 1B

 

I see I'm not the first to have this problem - I'll try the workaround identified here and post an update.

 

Thanks for your reply!

 

Dan

New Member
Feb 28, 2021 12:07:45 PM

Thanks again, I had to leave off all the Roth data blocks to get the covid related option to come up, then went back and added the Roth data.  

 

Seems like a glitch in the software, could end up costing someone if they're not paying attention!

-Dan

Level 15
Feb 28, 2021 1:25:32 PM

Right.  The workaround needed to get around the flaw in TurboTax that prevents it from asking if the code 1B distribution is COVID-19-related is to enter the Form 1099-R as is but omit the code B and selecting code 1 as the first code selection, complete the follow-up questions, then, when you reach the Review Your 1099-R Info page, edit this 1099-R and add the code-B to the as the second box 7 code. The COVID-19-related information will remain even though you won't have access to those questions with the code B present.

 

This flaw is present in the online version of TurboTax but not in the CD/download version.