topic I took a distribution in 2022 of my employer sponsored retirement account. Turbo Tax is giving me a retirement savings credit. This seems wrong? in Retirement tax questions

I took a distribution in 2022 of my employer sponsored retirement account. Turbo Tax is giving me a retirement savings credit. This seems wrong?

gcorbett100 — Tue, 10 Feb 2026 09:43:36 GMT

Re: I took a distribution in 2022 of my employer sponsored retirement account. Turbo Tax is giving me a retirement savings credit. This seems wrong?

DoninGA — Mon, 22 Jan 2024 17:07:21 GMT

You may be eligible based on your filing status and AGI.

Go to this IRS website for the 2023 Retirement Savings Credit information - https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit

Re: I took a distribution in 2022 of my employer sponsored retirement account. Turbo Tax is giving me a retirement savings credit. This seems wrong?

gcorbett100 — Mon, 22 Jan 2024 17:28:31 GMT

Thank you for your quick answer! I have read the IRS guidelines. I am reluctant to take this credit because I took the balance of my retirement in 2022 and paid all taxes due and owed. Just seems odd that taking a full distribution in 2022 would result in a credit. I made no contribution to my retirement account after the payout. I went to form 8880 and filled it out and I am still not seeing how this applies. I have always had a downloaded version of Turbo Tax Deluxe and could see the forms behind the numbers (schedule 3, form 8880, etc) but this year am trying the free version and do not see the ability to look at schedules/forms.

Re: I took a distribution in 2022 of my employer sponsored retirement account. Turbo Tax is giving me a retirement savings credit. This seems wrong?

DoninGA — Mon, 22 Jan 2024 17:33:20 GMT

Does your 2023 W-2 show a contribution in 2023? This would be in box 12 with a code of D.

Re: I took a distribution in 2022 of my employer sponsored retirement account. Turbo Tax is giving me a retirement savings credit. This seems wrong?

gcorbett100 — Mon, 22 Jan 2024 18:35:59 GMT

No as I did not have a W2. I had to take early retirement/social security and thus only have a SSA 1099.

Re: I took a distribution in 2022 of my employer sponsored retirement account. Turbo Tax is giving me a retirement savings credit. This seems wrong?

DoninGA — Mon, 22 Jan 2024 18:37:53 GMT

See if you can delete the Form 8880

Click on Tax Tools on the left side of the online program screen

Click on Tools

Click on Delete a form

Re: I took a distribution in 2022 of my employer sponsored retirement account. Turbo Tax is giving me a retirement savings credit. This seems wrong?

DoninGA — Mon, 22 Jan 2024 18:38:53 GMT

Also, see if there is a W-2 in the list. If so, delete the W-2

Re: I took a distribution in 2022 of my employer sponsored retirement account. Turbo Tax is giving me a retirement savings credit. This seems wrong?

gcorbett100 — Mon, 22 Jan 2024 18:42:29 GMT

Well, it appears according to posts that if I mark us as "full time students for part of the year" it removes the credit. My husband had a W2, I had the SSA-1099. I could start over and see how it shakes out or use the "full-time student" option. Truly seems like a glitch in the software. Thank you so much for your help!

Re: I took a distribution in 2022 of my employer sponsored retirement account. Turbo Tax is giving me a retirement savings credit. This seems wrong?

DoninGA — Mon, 22 Jan 2024 18:46:20 GMT

Yes, entering your occupation as Student will remove the Saver's Credit.