Question

Furloughed due to Covid in 2020. I withdrew from my 401K. It was supposed to b a penalty-free withdraw (normally 10%), but Turbotax doesn't have a place to indicate that.

Forum|Forum|5 years ago
February 19, 2021
1 reply
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When I entered my 1099-R formn in Turbotax my refund went way down because of the 10% early withdraw penalty, but this was supposed to be waived because of Covid-related furlough. Nowhere on the TurboTax process do I see a place to correct this.

TurboTax Premier Online

M

MinhT1

Your 401(k) is exempted from the 10% penalty. You must use form 8915-E.

The Form 8915-E (Qualified 2020 Disaster Retirement Plan Distributions and Repayments (Use for Coronavirus-Related Distributions)) has just been finalized by the IRS on February 12, 2021.

TurboTax will now update the program and the form will be e-fileable starting February 24.

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