Retirement 1099-R

[diveintodreams]

I'm having trouble with filling out my tax breaks. TurboTax is saying that they noticed I took out money from my retirement plan, but that's not true. What happened is that I was sent a check with all the remaining money in that retirement plan from the job that I left. What do I do?

[DavidD66]

The plan administrator sending you a check for the remaining balance in your retirement plan, has the same implications as you taking a distribution from your retirement plan.  Unless you rolled the funds over into another retirement plan within 60 days, the amount is taxable and  (if you are under 59 1/2) subject to a 10% penalty.  As for what you do, you enter the 1099-R, and the amount of the distribution will be included in your taxable income.  If you rolled the money over, there will be interview questions to indicate so.