Two 1099R forms from the same distribution
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.
Comments
-
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.
