Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
2taxed
Level 1

Not eligible for exclusion for those over age 59 1/2?

 I am 64. I got a corrective distribution for excess 2019 contributions (refund) from my 401K in 2020. The notice says taxable distribution, can't be rolled over.  Fed taxes were withheld but NYS taxes were not withheld on the distribution. Under "Where is this distribution from?"  should I check off "Not eligible for exclusion for those over age 59 1/2?"  What is "excluded" with that choice?

1 Best answer

Accepted Solutions
DaveF1006
Expert Alumni

Not eligible for exclusion for those over age 59 1/2?

Yes, select not eligible for exclusion for those over age 59 1/2 so this can be included as taxable income in your return. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

3 Replies
npierson7
Level 1

Not eligible for exclusion for those over age 59 1/2?

It means Excluded from taxable income. If you receive a refund, you must include the refund as taxable income in the year it was received, the 59 1/2 rule doesn't apply here. 

2taxed
Level 1

Not eligible for exclusion for those over age 59 1/2?

Thanks.  So with respect to the TurboTax page, I SHOULD select the "Not eligible..." bullet, correct?

DaveF1006
Expert Alumni

Not eligible for exclusion for those over age 59 1/2?

Yes, select not eligible for exclusion for those over age 59 1/2 so this can be included as taxable income in your return. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic AdsDynamic Ads
Privacy Settings
v