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Level 2
March 1, 2021
Question

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. 

    6 replies

    DoninGA
    Level 15
    Level 15
    March 1, 2021

    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.

    dbadmaAuthor
    Level 2
    March 1, 2021

    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
    Level 15
    March 1, 2021

    @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.

    macuser_22
    Alumni - Champ
    Alumni - Champ
    March 1, 2021

    @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.**