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Returning Member
posted Feb 28, 2021 5:11:07 PM

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. 

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6 Replies
Level 15
Feb 28, 2021 5:15:52 PM

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.

Level 15
Feb 28, 2021 5:16:41 PM

@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?

Returning Member
Feb 28, 2021 5:22:48 PM

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

 

Level 15
Feb 28, 2021 5:24:27 PM

@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.

Returning Member
Feb 28, 2021 5:30:34 PM

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

Level 15
Feb 28, 2021 5:32:50 PM

@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.