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the waive 10% penalty for 401Kwithdrawals

Lathanna
Level 1

Thank you, Ironman,

Does the waive of the penalty applies to withdrawals made in 2020?

Form8915A only mentions repayments

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4 Replies 4
Lathanna
Level 1

 Hi my client is getting charged the 10% withdrawal penalty and the full taxes.

Is this a glitch in the program?

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IRonMaN
Level 15

I believe you are looking for form 8915E.  Unfortunately it isn't finalized yet.

ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)
Just-Lisa-Now-
Level 15
Level 15
8915E is for spreading the taxability out over 3 years. Whether the 8915E will waive penalty as well, or we need the 5329 involved for this, Im not sure, since we dont have an 8915E available yet to see how it works.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
IRonMaN
Level 15

8915will allow you to spread the tax and is necessary to claim the "other" option on form 5329.

ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)