JeffreyR77
Expert Alumni

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.