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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 Comments 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.


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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?


Slava Ukraini!
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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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