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chill516
New Member

How do I file information about a Cares Act 401K withdrawal?

 
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3 Replies
Irene2805
Expert Alumni

How do I file information about a Cares Act 401K withdrawal?

First enter the information from the 1099-R you received.  To enter your 1099-R in TurboTax, please follow these steps:

  1. Click on Federal > Wages & Income  [In TT Self-Employed:  Personal > Personal Income].
  2. Scroll down to the Retirement Plans and Social Security section and click on the Start/Revisit box next to IRA, 4701(k), Pension Plan Withdrawals (1099-R).  
  3. If you've already entered one (or more) 1099-Rs, you will see a screen Your1099-R Entries.  Click on the link Add Another 1099-R.  
  4. If you haven't already entered a 1099-R, you will see the screen, Your1099-R. Click Yes and then Continue.
  5. You can either import your 1099-R or click on the I'll type it in myself box.  
  6. If you select to enter the information yourself, continue through the screens, answering the interview questions.
  7. A few screens after the 1099-R entry screen, you will see Tell us if any of these uncommon situations apply.  Mark the box 

    I took out this money because of a qualified disaster (includes COVID-19) and click Continue.  

 

NOTE:  The IRS instructions related to disaster distributions haven't yet been finalized.  You can enter your 1099-R, but please revisit this area later.

How do I file information about a Cares Act 401K withdrawal?

The IRS has stated that tax filing season starts on February 12th, "The February 12 start date for individual tax return filers allows the IRS time to do additional programming and testing of IRS systems following the December 27 tax law changes that provided a second round of Economic Impact Payments and other benefits."

Does this mean that we should expect Turbotax to have this additional information for Covid related early 401k withdrawals around this time? Or will it still take time for the rules to be imported into Turbo Tax, thus extending this out even longer? 

How do I file information about a Cares Act 401K withdrawal?

When I get to step 7.

  • A few screens after the 1099-R entry screen, you will see Tell us if any of these uncommon situations apply.  Mark the box 

    I took out this money because of a qualified disaster (includes COVID-19) and click Continue.  

My turbo tax deluxe doesn't have that statement "I took out this money because of a qualified disaster (includes COVID-19) and click Continue.

Do I put it in the Red circle section?

401ktax.JPG

Thanks

Jim

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