If you are referring to a 401K, IRA, or other retirement account distribution, you are correct. You qualify if: You, your spouse, or your dependent are diagnosed with COVID-19 You experience adverse financial consequences as a result of being quarantined, furloughed, or laid off You had work hours reduced to COVID-19 You’re unable to work due to child care closure or hour reductionThe distribution would be taxed over 2020, 2021, and 2022. You’ll have that time to pay back the funds you withdrew, without the amount impacting that year’s cap on contributions, and if you pay back the amount within that time, you’ll be able to claim a refund on those taxes. Click Here for more information.

Question

Tax Year 2020: This was due to Covid 19 my fidelity said no penelty would be applied

Forum|Forum|5 years ago
January 16, 2021
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TurboTax Deluxe Online

J

JulieC14

Employee

If you are referring to a 401K, IRA, or other retirement account distribution, you are correct. You qualify if:

You, your spouse, or your dependent are diagnosed with COVID-19
You experience adverse financial consequences as a result of being quarantined, furloughed, or laid off
You had work hours reduced to COVID-19
You’re unable to work due to child care closure or hour reduction

The distribution would be taxed over 2020, 2021, and 2022. You’ll have that time to pay back the funds you withdrew, without the amount impacting that year’s cap on contributions, and if you pay back the amount within that time, you’ll be able to claim a refund on those taxes.

Click Here for more information.

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