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

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

nickziegler-hotm — Tue, 09 Mar 2021 01:47:00 GMT

current distribution code is

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

ThomasM125 — Tue, 09 Mar 2021 03:48:08 GMT

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.

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

novodka44 — Tue, 09 Mar 2021 03:53:30 GMT

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.

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

DawnC — Tue, 09 Mar 2021 04:04:59 GMT

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 correctly? @novodka44