When do I file Form 1099-R from my 2024 withdrawal on taxes?

Thanks for the quick response! I checked the 1099-R again and it definitely says 2024 in Box 2. It was a straight withdrawal from a 401k from a previous employer - not an RMD or rollover situation. I'm 43 so no RMD issues yet. I think I might have messed up when entering something in TurboTax. When I went back and looked at what I entered, there was a question about whether this was a coronavirus-related distribution which I might have answered incorrectly. Could that be causing the confusion?

Yes, that's likely the issue. The coronavirus-related distribution rules had special tax treatment, but those provisions have expired. If you accidentally indicated this was a COVID-related distribution, TurboTax might be applying outdated rules. Go back and correct that answer in TurboTax. For a standard 401k withdrawal at age 43, you should definitely report it on your 2024 return. You'll likely owe regular income tax on the full amount plus a 10% early withdrawal penalty unless you qualify for one of the penalty exceptions.

Did you find it easy to use? I've been struggling with a similar 1099-R issue and my situation is complicated because I did a partial rollover. TurboTax keeps giving me different answers depending on how I enter it.

I'm skeptical of these tax tools. How does it work differently than TurboTax? Does it actually give you the right forms to file or just tell you what to do?

It was surprisingly straightforward. You just upload your tax documents (I uploaded my 1099-R and a few other forms), and it analyzes everything and explains exactly what each part means. It breaks down the specific codes and tells you how they affect your taxes. For partial rollovers, it specifically identifies which portion is taxable and which isn't, and explains how to report each part correctly. It's not just telling you what to do - it actually explains the "why" behind each tax rule so you understand it.

How does that even work? I thought it was impossible to get through to the IRS! Does it work for all IRS departments or just general questions?

Sounds scammy to me. The IRS phone systems are government-run. How could some random service magically get you through when millions of people can't get through? I'll stick to waiting on hold like everyone else.

It works by using their calling system that navigates the IRS phone tree automatically and waits on hold for you. When an agent finally answers, you get a call connecting you directly to them. It's basically like having someone wait on hold for you. It works for most general IRS support lines - I used it for tax filing questions. It's not magic - they're just using technology to handle the hold time instead of you having to do it yourself. Totally understand the skepticism though - I felt the same way before trying it.

That's a really good point! I went back and looked at the exact message again. It specifically said I didn't need to report this distribution "until next tax season" - which would mean the 2026 filing season for 2025 taxes. That seems wrong since my form is clearly marked 2024. I'm going to go through the TurboTax questions again and see if I made an error somewhere. I definitely want this reported on my 2024 return since I've already paid a lot in taxes this year.

That's exactly what I suspected. TurboTax is saying to file it "next tax season" which would indeed be wrong for a 2024 form. When you go back through, pay special attention to any questions about rollover periods or special distribution types. Sometimes a single wrong answer can send TurboTax down an incorrect path. Also check Box 7 on your 1099-R - the distribution code there is crucial for determining how it's taxed. Codes like "1" mean a normal taxable distribution, while others may have special rules.

Yes, there's a huge difference! Traditional 401k withdrawals are generally fully taxable (you'll get a 1099-R with code "1" or "7" in Box 7). But for Roth IRAs, it depends on whether you're withdrawing contributions or earnings and how long you've had the account. If you're withdrawing contributions from a Roth IRA, those come out tax-free because you already paid tax on that money. If you're withdrawing earnings before age 59½ and before the account is 5 years old, those might be both taxable and subject to penalties.

Thanks for explaining! I think that's part of my confusion. My Roth IRA withdrawal was just taking out some of my original contributions (not any earnings), so I wasn't sure why I got a 1099-R for it if it's not taxable.