IRC 401(a)
- March 1, 2023
- 1 reply
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Helping my Brother-in-Law with his taxes. In 2022 he left his job working for a multi-member LLC as a W-2 employee. We have the W-2 for that income. On the W-2 in box 12 is the following:
Code C - $46.40
Code D - $711.76
Code W - $1077.00
Code DD-7073.94
So far, no issues with the above. What's throwing us for a loop is a separate document received from the company. It's not any kind of a tax reporting document, and it's titled "<companyname> LLC, Savings Plan" and shows what it calls a "distribution" of $669.69. It shows a "net distribution" of 535.75 and "Federal Tax Abount: of $133.94. The document also has a statement that reads, "This distribution is from an employee benefit plan intended to be qualified under Internal Revenue Code Section 401(a)". Took a quick peek and see that IRC 401(a) deals with Qualified pension, profit-sharing and stock bonus plans. My BIL is clueless as I am. What is this and how to I deal with/enter this in TurboTax?
