1. Home
  2. Taxes General Forum
  3. Confused by Form 8880, need help

Confused by Form 8880, need help

We're using TaxAct to prepare my daughter's tax return, and I'm stumped by TaxAct's questions for Form 8880.

A little background... In 2008, my daughter's company ended its pension plan and distributed her share to her. She put the distribution in her 401k, (I think, it might have been her Roth). It was about $30,000.

Now, in using TaxAct for 2009, it asks us to fill in distribution amounts from 2007 forward. I notice there is a box to check for no other distributions. Is that what we should click? Or, do we enter the distribution amount in the 2008 text field?

Thanks

Reply to
Keith Snyder
Loading thread data ...

If the discontinued pension plan could not generate a Form 8880 credit when money was contributed to it, it cannot detract from that credit when receiving a distribution from it.

Reply to
Arthur Kamlet

A rollover to another retirement account is not reported as a distribution for this purpose. See the instructions for Florm 8880, which you can access through TaxAct Help. Check the box if this is the only distribution she had.

Phil Marti VITA/TCE Volunteer

Reply to
Phil Marti

Thanks, that is what I did.

Looking back we made an error at start. When TaxAct uses previous year's forms and schedules, the program asks you to delete those forms not used this current year. There is no 1099-R for 2009, and we should have checked the delete box for it.

I think TaxAct thought my daughter received a 1099-R but had failed to enter the amount.

Thanks again

Reply to
Keith Snyder

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.