- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
If i made a withdrawal from my 401k due to covid relief, can i defer the tax penalty until next year. I was told you can postpone the tax penalty for up to 3 years.
I paid 15% off the top to cover some of the taxes but im getting hit with around 10% as i file.
Topics:
February 6, 2021
4:58 AM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
To be able to spread the income from this distribution over 3 tax years, this distribution must be reported on Form 8915-E which has not yet been released by the IRS and has not yet been implemented in TurboTax. You'll have to wait for that form to be released.
February 6, 2021
5:11 AM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
If I withdraw $100,000 and take three year spread-out option for COVID,
and in 2021 I do nothing with my IRAs.
what will be in the distribution box on 2021 Line 4a ?
I know I would pay federal tax on $33,333.
NJ is not dividing by three, so if 4a is not zero or even if it is zero , it looks like I would pay NJ tax on that money again.
Something will have to adjust it somewhere.
February 6, 2021
6:57 AM