Taxpayers will receive a Form 1099-R from the payer of the 401(k) distribution. A copy of that form is also sent to the IRS.
To enter a 401(k) distribution in your TaxAct® return:
- From within your TaxAct return (Online or Desktop) click on the Federal tab. On smaller devices, click in the upper left-hand corner, then select Federal.
- Click Retirement Plan Income to expand the category, then click IRA, 401(k) and Pension Plan Distribution (Form 1099-R)
- Click Add to create a new copy of the form, or click Review to review a form already created
- Click Quick Entry or Step-by-Step Guidance. If you select Quick Entry, be sure to scroll down to answer all applicable questions. If you select Step-by-Step Guidance, the program will proceed with the interview questions.
For additional information, see IRS Publication 575 Pension and Annuity Income