topic Re: 1099R and Covid in Retirement tax questions

1099R and Covid

Looney1966 — Tue, 30 Mar 2021 20:48:39 GMT

I took a 401K withdrawal in the amount of $100,000 in 2020. The code on the 1099-R is a 1. I was told that I do not have to pay the penalty on it and that I can pay the tax over 3 years. What do I need to do to do that?

Re: 1099R and Covid

macuser_22 — Tue, 30 Mar 2021 20:54:25 GMT

Enter the 1099-R and answer yes that it was a COVID related distribution and answer the rest of the questions.

Re: 1099R and Covid

DoninGA — Tue, 30 Mar 2021 20:55:39 GMT

Enter the Form 1099-R that you received. Then answer the follow-up questions and indicate the distribution was due to Covid-19. If you are eligible the program will remove the 10% early distribution penalty and offer you the option to either have the distribution entered in its entirety on the 2020 federal tax return or to have the distribution split into 1/3 over three years.

Enter 1099-r in the Search box located in the upper right of the program screen. Click on Jump to 1099-R