My husband cashed out his 401K when he resigned from his previous employer. He paid taxes on it then. His W2 from the employer has some of the 401K information on it and we still have not received the 1099-R. Do we need to request one or can we go ahead and file?
SweetieJean I have already called twice and asked for it either mail or email and still no response from anyone
What info for it is on the W2? Is it listed separately? Maybe part of the W2 papers is the 1099R form.
It has the Retirement Plan box marked with a sub category of S125 and then the amount beside of it.
I just looked at his W2 and it only has boxes 1-20 on it but has his 401K amount on there in box 14. However there is nothing there for the cash out and the taxes. I will be calling again first thing in the morning to request it. He should have already gotten it by now but this company has been dirty since the beginning.
You must have the 1099-R. Nothing in a W-2 applies to a retirement plan distribution. If he paid tax (had tax withheld) then that must be in box 4 on the 1099-R to be credited for it. You must know the proper box 1, box 2a and codes in box 7 to enter a 1099-R. Failure to report the 1099-R will result in a bill from the IRS that wants tax on the entire distribution if they receive a 1099-R from the company but you fail to enter it.
The 401K distribution is not on the W2. Only contributions. You need the 1099R.
AND You didn't actually pay the tax or 10% penalty (you pay a 10% early withdrawal penalty if you are under 59 ½). You had taxes withheld like from your paycheck. You still have to enter the whole amount (before taxes were withheld) with your other income to figure out the total tax (and it may put you into a higher tax bracket) and then the withholding is subtracted from the total tax to figure your refund or tax due. The withholding will show up on 1040 line 64 (1040A line 40). The 10% penalty is on 1040 line 59.