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New Member
posted Jan 22, 2024 12:57:43 PM

401K covid distribution - rolled over 10K

took complete 401k of $ 66K Distribution in April 2020.. Rolled over 10K before 60 days. So i was taxed on entire amount and I claimed 56K on tax return.   I withdrew entire 10K that I had rolled over.  Do I have to pay 10% penalty because I am only 59, since it was part of the entire 66K distribution during covid?

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2 Replies
New Member
Jan 22, 2024 12:59:11 PM

Just to be clear.  I withdrew the 10K in April 2023.. 3 years later. I forgot to mention that.

Expert Alumni
Jan 22, 2024 2:48:55 PM

You will receive a form 1099-R for the $10k withdrawal by the end of January 2024.

 

You have to report that form 1009-R on your tax return and you will pay income tax on that amount and also a 10% early withdrawal penalty as you are younger than 59 1/2.

 

The waiver of the penalty only applies to your net withdrawal of $56k in 2020, not on the withdrawal in 2023.