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Returning Member
posted Jan 25, 2023 5:10:33 PM

I withdrew from my 401k last year but used the funds to expand my business what form do I need to report to the IRS? Is it a 1099-R?

It was used for business purposes, can that be shown as well?

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2 Replies
Level 15
Jan 25, 2023 5:14:09 PM

You will get a 1099R for the money you took out of your 401k and you need to enter it on your tax return:

 

To enter your retirement income, Go to  Federal> Wages and Income>Retirement Plans and Social Security>IRA  401 k) Pension Plan Withdrawals to enter your 1099R.

Level 15
Jan 25, 2023 5:55:42 PM

Using the money for your business is not relevant to the tax treatment of the distribution.