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Level 2
April 18, 2023
Question

Daughter had a 401K that cashed out after she left the company. It was a small amount, less than $200. She used it towards a medial bill. Can she save on taxes

  • April 18, 2023
  • 1 reply
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1 reply

Level 15
April 18, 2023

She has to enter the 1099R and may owe a tiny bit of tax since it was an early withdrawal.

 

Go to  Federal> Wages and Income>Retirement Plans and Social Security>IRA  401 k) Pension Plan Withdrawals to enter your 1099R.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
fanfare
Level 15
April 19, 2023

the penalty is $20.