My husbands employer closed out their existing 401K and distributed it and tax was paid, but they have issued 1099-NECs to report the income. What do I do?

He does not have a business. How should this have been reported. They had to move over to a new 401K and the funds would not roll over for anyone.

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He has to get a 1099R for it not a 1099NEC. The employer did it wrong. The employees should see an accountant or lawyer.

Do you have an Intuit account?