Covid-19 401K withdrawl
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dbadma
Returning Member

Covid-19 401K withdrawl

If I took out 100,000 for example and want to split that over three years how do I do this? Would the gross distribution be 100,000 and the taxable amount be 33,333? Or would the gross and taxable amount be 33,333. 

7 Replies
DoninGA
Level 15

Covid-19 401K withdrawl

The distribution would be $100,000 and the taxable amount would be $33,333. 

But that is calculated by the TurboTax software.  You enter the Form 1099-R that you received exactly as received and then answer the follow-up question concerning a Covid-19 withdrawal.

macuser_22
Level 15

Covid-19 401K withdrawl


@dbadma wrote:

If I took out 100,000 for example and want to split that over three years how do I do this? Would the gross distribution be 100,000 and the taxable amount be 33,333? Or would the gross and taxable amount be 33,333. 


"If" - did you?    Do you have a 1099-R for a 2020 distribution?     Was it because of COVID?

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
dbadma
Returning Member

Covid-19 401K withdrawl

 
dbadma
Returning Member

Covid-19 401K withdrawl

So it seems, they would do this if only I do not check the box Pay tax on entire retirement distribution in 2020? 

 

DoninGA
Level 15

Covid-19 401K withdrawl


@dbadma wrote:

So it seems, they would do this if only I do not check the box Pay tax on entire retirement distribution in 2020? 

 


That is correct.

dbadma
Returning Member

Covid-19 401K withdrawl

If I paid taxes on the money I withdrew could I split that up in 3 years? 

macuser_22
Level 15

Covid-19 401K withdrawl


@dbadma wrote:

If I paid taxes on the money I withdrew could I split that up in 3 years? 


The tax?  No.   The tax withheld will apply to 2020.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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