Question

For Covid19 401k Withdrawal how do we have the penalty waived? Everything I took out was Covid19 Withdrawal and the 10% penalty should be waived but it doesn't waive it.

Forum|Forum|5 years ago
February 18, 2021
2 replies
0 views

There are options that ask you the reason for early withdrawal but the only option that I would see that would work is Other. Shouldn't it say due to Covid19?

TurboTax Premier Online

CatinaT1

You will report this on a Form 8915-E. On February 11th, the IRS finalized the Form 8915-E for retirement plan distributions under the CARES act. The form will be available on TurboTax for efile approximately February 24th.

Please sign-up here and we will email you once the form is live.

In the mean time, you can make sure you are eligible for the provision here - Coronavirus Relief

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T

tuckerB

4-2-22 I have the desktop Premier version. Covid19 401k update has been installed. I update my 1/3 taxable about and the taxes changed $11K. When I hand calculated the tax amount changed based on the IRS.gov instructions it should have changed. $7.7. The difference is at 10% penalty for an early withdraw. I have called Turbo tax twice and I am told to contact the IRS. I do not think the IRs is going to fix Turbo tax. Can you some contact me. Is any one still having the same 10% penalty issue after the upgrade.

DoninGA

Employee

@tuckerB wrote:

4-2-22 I have the desktop Premier version. Covid19 401k update has been installed. I update my 1/3 taxable about and the taxes changed $11K. When I hand calculated the tax amount changed based on the IRS.gov instructions it should have changed. $7.7. The difference is at 10% penalty for an early withdraw. I have called Turbo tax twice and I am told to contact the IRS. I do not think the IRs is going to fix Turbo tax. Can you some contact me. Is any one still having the same 10% penalty issue after the upgrade.

A 10% early withdrawal penalty Cannot be assessed on the 2021 tax return if you did not enter a 2021 Form 1099-R on your tax return.

The 2nd year of the 1/3 of the 2020 Coronavirus-related distribution will be entered on your Form 1040 Line 4b if the 2020 distribution was from an IRA or on Line 5b if the 2020 distribution was from a retirement account other than an IRA.

The taxable amount entered on either Line 4b or Line 5b is reported on the tax return as ordinary income and taxed at your current tax rate. It is added to your other taxable income reported on Line 15. The taxes on the taxable income are reported on Line 16.