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Get your taxes done using TurboTax
It depends. The CARES Act allowed you to take a distribution from your 401(k) this year and not be subject to an early withdrawal penalty.
Additionally, a provision of the law allowed you to spread the taxation of the distribution evenly over 2020, 2021, and 2022.
You can check your entries for your 1099-R to verify you marked you took the money out for a qualified disaster (including COVID-19):
TurboTax is expected to have Form 8915-E for the 3 year tax averaging component in place by the end of the month.
ā€ˇFebruary 15, 2021
6:03 PM