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How do i spread my 401k distribution across 3 years? my 1099-r has incorrect reason in box 7

current distribution code is
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3 Replies
ThomasM125
Expert Alumni

How do i spread my 401k distribution across 3 years? my 1099-r has incorrect reason in box 7

If your pension distribution is coded as being taxable, you will see a screen in TurboTax that says Was This a Withdrawal due to COVID-19 or a Qualified Disaster Distribution? after you enter your form 1099-R When you indicate that it is, then you will see the option to spread the taxable amount over three years. 

 

If your distribution has a wrong code in box 7, you will have to request a corrected form from the issuer.

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novodka44
Returning Member

How do i spread my 401k distribution across 3 years? my 1099-r has incorrect reason in box 7

I have the same problem. The screen ,

    Does [name] want to pay all the tax this year? Click Continue and the taxation of your distribution will be spread over three years.

Never appears.

DawnC
Expert Alumni

How do i spread my 401k distribution across 3 years? my 1099-r has incorrect reason in box 7

If you want to spread the tax, do not put a checkmark in the box that says ''I want to pay all of the tax in 2020''.  When you click Continue, you should be done.   TurboTax should only include 1/3 of the total distribution on Form 1040, but you won't see Form 8915-E when you are entering the 1099-R.    If TurboTax isn't treating your covid-related distribution correctly, use the link in the article below to sign up for notifications.   

 

Why do I still get 10% penalty on the withdraw of my retirement even though I answer the questions c...     @novodka44

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