Two 1099R forms from the same distribution

johndwjr

I received 2 1099Rs from a single 401k account distribution after a job change. One was for the distribution that was rolled into a Roth and the other had a small gross distribution in box 1 and the same amount in box 4 for the federal tax withheld with Distribution code 1. FreeTax sees it as a distribution that will have a penalty but it seems to be simply the taxes withheld on the primary distribution and not subject to penalty. It's not a significant amount but I'd like to figure out how to get FreeTax to see it the correct way.

MatthewD

Hello,

Even if it is a distribution to pay federal taxes and it is also an early distribution, so it will be subject to the 10% early withdrawal penalty. There is no way to avoid that. There is one option that may help. The 10% penalty exception, "
Employee plan distributions due to separation from service in or after the year you reach age 55 (Doesn't apply to IRAs) "

If that applies to you, continue through the Retirement Income pages and check that option and enter the amount.