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Does the Cares Act early withdrawal exemption apply to distributions from 401(k) when 1099-R Box 7 has codes 1B? Is this a not a qualified plan? Works if the code is 1
I withdrew less than the $100,000 from my 401(k) account and was issued two 1099-R in different amounts that equal the amount I withdrew. One 1099-R has Box 7 with the code 1 and the other has the code 1B. TurboTax processed the code 1 as expected but claims I owe the early withdrawal penalty for the Code 1B.
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‎February 26, 2021
10:28 AM