Find how much of the distribution is taxable to steve

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Problem 1: Steve and Naomi are both age 41. Steve decided to quit his job and received a total distribution from his 401(k). Steve received the distribution on 2/28/2019. He used $4,000 to pay off his car loan and rolled over the remaining distribution to the 401(k) plan at his new job on April 15, 2019. Steve did not add the withheld federal and state tax withholding to the remaining distribution that was rolled over. Steve's Form 1099-R is shown below. How much of the distribution is taxable to Steve?

Select one:

a. $23,982
b. $75,934
c. $79,934 This answer is incorrect. $79,934 is the full amount of Steve's distribution. He did roll over part of this distribution; therefore, the entire amount is not taxable.
d. $ 4,000

Reference no: EM132675476

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