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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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With a mandatory distribution from a 401K; can the money be

Customer Question

With a mandatory distribution from a 401K; can the money be withdrawn in January of the following year but the taxes paid in the mandatory distribution year?
Example: Mandatory distribution for 2014 is $4,000. The taxes on that money are paid and reported on the 2014 tax returns but actually the money is withdrawn from the 401K account the first week of January 2015.
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
That woudl not be allowed...The taxable income is recognized based on when income is received.When distribution was actually or constructively received in January 2015 - it will be reported on 1099R for 2015 and will be included into 2015 tax return.That is regardless for which tax year that distribution is made.
Expert:  Lev replied 1 year ago.
The taxable income is recognized based on when income is received.
When distribution was actually or constructively received in January 2015 - it will be reported on 1099R for 2015 and will be included into 2015 tax return.
That is regardless for which tax year that distribution is made.
Let me know if you need any help with reporting.

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