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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123037  
Subject: Re: Indirect 401k rollover - how to account? Date: 3/8/2001 10:34 PM
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However, I thought I was going to get a credit for the taxes withheld in box 4 on my 1099-R.

I paid $850 in taxes when Principal disbursed my wife's 401k plan and I paid $850 when I rolled this over to a Smith Barney IRA.

Shouldn't I get a credit for that $850 or is that what line 58 comprises of (which is carried over from the Tax Payments Worksheet, line 12).

The $850 that was withheld and shows on the 1099-R is the $850 on line 58. You get a credit for that, just as if it were withheld from wages.

The $850 you sent to Smith Barney is what allows you to have a zero on line 16b. Had you not sent that check, you would have had a taxable distirbution on 16b of $850, plus an $85 penalty on line 54.

Phil Marti
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