Tax question on 401k distribution?
Tax question on 401k distribution?
I moved some post tax 401k money to a brokerage account (my own money I put in, no employer money). My 1099R shows the gross distribution, but as taxable amount shows zero. Is this a taxable event? The brokerage house is Fidelity, and they're usually pretty good about calculating this. I was told I can do this tax free, but want to be sure. The distribution code is 1 - Early distribution, no known cause.
Answers:
SIMEON S: Everyone goes by what the 1099R shows, especially the IRS.
Will you be questioning the Law of Gravity next?
2008-02-12 16:44:12
2008-02-12 16:44:12
TXBLKGRL: By "post tax 401k money" you mean taxes where already taken out. So you are good. It's not taxable if you move it to another 401k plan within 90 days.
2008-02-12 16:56:44
2008-02-12 16:56:44
travelguruette: Post tax money you do not have to worry about.
2008-02-12 22:46:57
2008-02-12 22:46:57
Chosen Answer
digdowndeepnseattle: If the 1099-R shows zero in taxable amount then it's a non-taxable event. I find it odd though that there was no earnings on this amount. Earnings on a post-tax 401k account are pre-tax and thus should be taxed upon distribution. Did you get 2 1099-R's? 1 for post-tax showing what you said above and then 1 for pre-tax that you rolled over?
2008-02-13 06:29:45
digdowndeepnseattle: If the 1099-R shows zero in taxable amount then it's a non-taxable event. I find it odd though that there was no earnings on this amount. Earnings on a post-tax 401k account are pre-tax and thus should be taxed upon distribution. Did you get 2 1099-R's? 1 for post-tax showing what you said above and then 1 for pre-tax that you rolled over?
2008-02-13 06:29:45