CRD WITHHOLDING SPREAD OVER 3 YEARS?

bluetoothless · ‎May 16, 2021

I have elected to spread my CRD from my 401K spread out over three years, but does TurboTax/IRS automatically do the same for the 22% in taxes withheld?

DawnC · ‎May 16, 2021

No, the withholdings do not get spread. You get credit on this tax return for the full amount of the taxes withheld. When you report the other 2/3 of the distribution in 2021 and 2022, no withholding will be applied, it will all get counted on this return. So, keep that in mind for the next two years. You are getting all of the credit for Box 4 on this tax return that you are filing now, 2020.

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DawnC · ‎May 16, 2021

No, the withholdings do not get spread. You get credit on this tax return for the full amount of the taxes withheld. When you report the other 2/3 of the distribution in 2021 and 2022, no withholding will be applied, it will all get counted on this return. So, keep that in mind for the next two years. You are getting all of the credit for Box 4 on this tax return that you are filing now, 2020.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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CRD WITHHOLDING SPREAD OVER 3 YEARS?