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    karenkfb's Avatar
    karenkfb Posts: 2, Reputation: 1
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    #1

    Apr 18, 2011, 12:18 PM
    401K Distribution tax question
    My former employer closed its 401K program and its administrator moved the funds to a custodial account. I did not receive a distribution check. On the 1099-R form the administrator sent me, box 7 is coded G and the Total Distribution box is checked. What are the tax implications and how does TurboTax treat this? As an early withdrawal/distribution-- I did not receive a check? Thanks
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Apr 18, 2011, 01:52 PM

    Reason Code "G" specifies that the account was rolled to another qualified plan, such as a different 401(k) or an IRA. This is NOT considered a distribution to you and is NOT a taxable event. If you enter this into TurboTax it should work just fine.

    On a side note - I trust you do know what's happened to your account - do you know who the new administrator is, how to contact them etc?
    karenkfb's Avatar
    karenkfb Posts: 2, Reputation: 1
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    #3

    Apr 18, 2011, 02:01 PM

    Thanks so much - I do know who the new administrator/custodian is and contact info. I will have to look again at how TurboTax treated the "distribution" - perhaps I looked too quickly when doing my taxes over the weekend but thought it was a taxable event. Armed with your response, I will take another look. Thanks again!
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