Will my 10% 401k early withdraw penalty be able to be taken out of my Federal Tax refund?

Forum|Forum|7 years ago
June 1, 2019
2 replies
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For example: If I took an early withdraw of $5,000 from my 401k and paid the appropriate taxes at time of withdraw, but still owed the $500 10% early withdraw fee, will TurboTax be able to withhold that from my federal tax return? So If I was due to get a $1000 tax return, I would be able to pay that fee with the $1000 return and only receive $500? Or would I need to pay that separately out of pocket?

TurboTax Deluxe Online

Carl11_2

Employee

TurboTax handles such a situation just fine. All you have to do is enter the 1099-R exactly as printed, then answer the questions on the screens that will follow.

M

MinhT1

When you prepare and file your taxes with TurboTax, if you have correctly answered all questions and entered the form 1099-R, then the 10% early withdrawal has been properly calculated and the refund (or tax due) that you see has already taken into account this penalty.

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