Heathrfam22
Returning Member

Retirement tax questions

Hi Champ,

Thanks for inquiring...

It is for 2018, we paid the taxes but didnot include the penalty on our 1040 for the early distribution.  Hoping I can ask you a couple more questions, is there a limit to how many times I can apply for a waiver for the early distribution fee?  We started withdrawing funds in 2018, continued in 2019, and 2200.  Each subsequent year the withdrawal will be larger therefore the penalty will be larger.  

Wondering if it is better to accept the penalty now and "save" our waiver requests for the future?  I'd really appreciate you looking into your crystal ball and letting me know if the IRS is going to continue waiving the early distribution fee as was done in 2020 for the next few years?  We have to amend our 2019 taxes to address the early distribution fee.  

Thanks again for your information, it was kind of crazy I came across your message as I was getting ready to mail in my 5923 form only asking for a partial waiver of the penalty.

Thanks for your help,

Heather