My 401K wouldn't allow or approve COVID/hardship withdrawls. I pulled money out an used most of it for medical bills, but not all (Not good, I know). I was unfortunately issued a 1099-R with a distribution code 1.
I got hit with the 20% withdrawl penalty at the time of withdrawl which I accept. Now the 10% early withdrawl penalty is being assessed on my taxes, though the taxable amount has been reduced with what I spent on medical bills (but not dollar for dollar).
However, can I spread the 10% penalty tax amount out over three (3) years? How do I do this?
