Question

How do i spread my 401k distribution across 3 years? my 1099-r has incorrect reason in box 7

Forum|Forum|5 years ago
March 9, 2021
1 reply
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current distribution code is

If your pension distribution is coded as being taxable, you will see a screen in TurboTax that says Was This a Withdrawal due to COVID-19 or a Qualified Disaster Distribution? after you enter your form 1099-R. When you indicate that it is, then you will see the option to spread the taxable amount over three years.

If your distribution has a wrong code in box 7, you will have to request a corrected form from the issuer.

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N

novodka44

I have the same problem. The screen ,

Does [name] want to pay all the tax this year? Click Continue and the taxation of your distribution will be spread over three years.

Never appears.

DawnC

Employee

If you want to spread the tax, do not put a checkmark in the box that says ''I want to pay all of the tax in 2020''. When you click Continue, you should be done. TurboTax should only include 1/3 of the total distribution on Form 1040, but you won't see Form 8915-E when you are entering the 1099-R. If TurboTax isn't treating your covid-related distribution correctly, use the link in the article below to sign up for notifications.

Why do I still get 10% penalty on the withdraw of my retirement even though I answer the questions correctly? @novodka44

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