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browningwaters
March 6, 2025
Question

Can I deduct $50,000 of court ordered federal restitution that was withdrawn from my 401K?

  • March 6, 2025
  • 1 reply
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    xmasbaby0
    Employee
    March 6, 2025

    No.  Court ordered restitution for some for some sort of wrongdoing on your part is not deductible.   Enter your 1099R ---it will be taxable income; if you are younger than 59 1/2 you are also subject to the 10% early withdrawal penalty.

     

     

    To enter your retirement income, Go to  Federal> Wages and Income>Retirement Plans and Social Security>IRA  401 k) Pension Plan Withdrawals to enter your 1099R.

     

     

     

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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