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Early withdrawal from a 401K in 2020; any reason why there would be a code "1" in 2020

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Level 15
Level 15

Early withdrawal.   

Not all withdrawals will qualify for penalty exclusion or 3 year spread, the client needs to be adversely affected by Covid in order to get any breaks.

Any withdrawal taken before Covid and they were not 59½ years old will be subject to penalty.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 9

even the ones I have seen that DO qualify for the exclusion all have code 1, You just have to fill form 8915E on the ones that qualify, which should make the 5329 disappear.   Oh, by the way, that Form 8915E  is not available yet.

Generating Form 8915-E in ProSeries - Intuit Accountants Community

 

hopefully next week..

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Level 1

Hello,

I need help to fill out form 8915E

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Level 15

Since the reason for withdrawal is a "self-certified" process, not all distributions are already identified as Qualified. It's being left up to the tax payer to confirm it is a qualified distribution.

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Level 1

can someone help me how to fill form 8915E?

 

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Level 1

I still did not understand

 

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Level 9

Availability of form 8915-E - Intuit Accountants Community

 

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Level 15
Level 15

@DLT123   Fill out the Covid disaster section on the `1099R worksheet, that will populate the 8915E


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 9

well....i'm dense I guess.   on the 8915E part 1 (where it says check this box if Coronavirus)...it says it is auto calculated...but mine is blank...and conversely, the 8915E doesn't print with return.  the 5329 has code 12 on line 2, and the amount as not being subject to the 10% penalty, but there must be some step i'm ignoring.....??

and then, when i think i may have it figured out, it only brings 1/3 down to the taxable amount...and they want to pay all the tax now....it's only a $6,000 distributiion

 

 

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Level 15

https://proconnect.intuit.com/community/retirement-tax-credits-and-deductions/help/generating-form-8...

Updated 45 minutes ago.

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