Does 401K early withdrawal penalty get automatically paid?

Forum|Forum|6 years ago
January 22, 2020
1 reply
0 views

I filed a 1099-R form along with my 401K since I withdrew my 401K funds early after leaving my job. It indicated while filing that I owe $70 for taking it out early even though I paid taxes on it upon withdrawal. Is this amount automatically deducted from my return or will I have to pay it separately?

TurboTax

VolvoGirl

Employee

Yes it is automatically included and will reduce your refund or increase your tax due. If you were over 55 when you left your job you might have an exception to the penalty. When you are done entering the 1099R it will ask you if you have an exception.

The 10% penalty will show up on 1040 Schedule 2 line 6 which flows to 1040 line 15