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Question

1099-R

Forum|Forum|1 year ago
February 1, 2025
1 reply
0 views

I received a settlement from a 401K class action lawsuit. The distribution code is "1". Federal taxes were taken out and it's shown as a total distribution. My question is regarding the next question which asks if this is pension/IRA taken early. I'm 73, so can I check, none of these options qualify?

Since you're 73, the 401(k) settlement distribution isn't considered an early withdrawal. The distribution code "1" usually means early distribution, but it doesn't apply to you because of your age. You can normally select "none of these options qualify" for the early pension/IRA withdrawal question (select the option that indicates it isn't an early distribution).

For more details, you can visit the IRS page on early distributions