1099

[victoriadavenport]

I took out $43,000 from my 401k - I am over 59-1/2 for a down payment on a house.  It fell through and I tried to put it back and  they would not let me.  So I rolled it all into another 401k (except the taxes they took from it which they would not give me back)  they said i would get it back at the end of the year - so in turbo tax I could only roll $35,000 over.  It had no place in turbo tax saying the 8,000 was for taxes they automatically took.  Now I have to pay taxes on the $8,000.  I tried for two hours to talk to a live person but the recorded person on the phone kept hanging up on me saying I didn't have an account and I do.  Please answer this question or tell me how a can get a live person on turbo tax.  Thank you.

[fanfare]

If $8000 was withheld for tax , you had to make that up yourself at the time you redeposited.

After 60 days, it is too late and that is now a distribution.

[LeonardS]

When you withdrew the $43,000 from your 401K  the plan administrator was required by IRS regulations to withhold tax on the distribution.  For tax purposes, your distribution was $43,000 even though you only received $35,000.  In order to pay back the distribution without any tax liability the entire amount, $43,000 would have to be paid back, the $35,000 you received plus the $8,000 withheld for taxes.  There is no provision in the tax code to avoid paying tax on the $8,000 withheld by the plan administrator as it was not put back into your new 401K.  When you file your 2021 tax return the $8,000 tax withheld will be applied to reduce your 2021 tax liability.