Is this from a Roth 401k and do you have code B1 in box? If yes then please follow these workaround steps as discussed in 1099R Coronavirus Exception Issue:
- Login to your TurboTax Account
- Click on the Search box on the top and type “1099-R”
- Click on “Jump to 1099-R” and enter all 1099-R information, enter code "1" but do not enter code "B" in box 7
- Continue until "Tell us if any of these uncommon situations apply" screen
- Select "I took out this money because of a qualified disaster (includes COVID-19)"
- Answer all questions in regards to the COVID distribution to trigger that you qualify for the Qualified Disaster Retirement treatment.
- On the “Review your 1099-R info” screen click "edit" and add code "B" to the 1099-R Form entry.
- When you continue the COVID questions are still accessible
You can choose to have the distribution taxed over 2020, 2021, and 2022 instead of only in 2020. You’ll have three years to pay back the funds you withdrew, without the amount impacting that year’s cap on contributions. If you pay back the amount within that time, you’ll be able to claim a refund on those taxes paid when you file an amended tax return. Please see IRS Coronavirus-related relief for retirement plans and IRAs for more details.
TurboTax Desktop does not have this issue. Please see How do I switch from TurboTax Online to the TurboTax software? for additional information.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
