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Level 1
March 22, 2020
Solved

If I took a distribution from my 401K with the 20% withheld, then deposited the 80% in a traditional IRA within 60 days, do I pay a penalty and / or tax?

  • March 22, 2020
  • 1 reply
  • 25 views
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Best answer by AlanT222

Yes, you will pay tax and penalty on any amount that was not rolled over, even if the amount was the 20% withheld for taxes. 

 

1 reply

AlanT222Answer
Level 15
March 22, 2020

Yes, you will pay tax and penalty on any amount that was not rolled over, even if the amount was the 20% withheld for taxes. 

 

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