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Early withdrawal fee waive for covid 19 pandemic

MAYFERNANDEZ
Level 2

I am doing the client tax and she withdraw her 401K because of the 10% penalty tax waive? How to remove it on schedule 2 item 10 for early withdrawal or how I fixed and waive the penalty

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5 Replies 5
IRonMaN
Level 15

If she withdrew it for that reason, she doesn’t get to have the penalty waived.  The penalty is waived for folks having financial hardships due to COVID.

ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)
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MAYFERNANDEZ
Level 2

thank you, does it says in the form the reason why you have to withdraw early the 401K?

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IRonMaN
Level 15

Which form are you asking about?  Did she suffer a financial hardship because she was unemployed or ill, or did she pull it out because it was a good time to do it because the penalty was potentially waived?

ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)
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MAYFERNANDEZ
Level 2

Thank you again. The form I'm talking is when you pull out the 401K from the company, if they're asking for reasons, hardship or etc.. I think that's the reason because she heard of waiver of 10% penalty that's why she pull out her retirement.

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qbteachmt
Level 15

Some providers included a declaration on the withdrawal request form and some did not. It's a self-certification, anyway.

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