When/how do I pay the 10% penalty for 401k withdrawal?

Forum|Forum|7 years ago
June 1, 2019
9 replies
124 views

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TurboTax Deluxe Online

Best answer by MinhT1

The 10% tax penalty for early withdrawal from your 401(k) is calculated by TurboTax and included in the amount of tax due or refund.

You just need to enter your form 1099-R correctly and answer the questionnaire about the form 1099-R in TurboTax.

MinhT1Answer

Alumni - Intuit

The 10% tax penalty for early withdrawal from your 401(k) is calculated by TurboTax and included in the amount of tax due or refund.

You just need to enter your form 1099-R correctly and answer the questionnaire about the form 1099-R in TurboTax.

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hmausten

Level 2

Does turbo tax know when you are not suppose to be penalized?

HDFatboy

Level 2

Nobody at Intuit will talk to me, so I’ll take my 2022 tax forms to a CPA to correct an issue TurboTax caused and then sue Intuit to get restitution for any upcoming IRS penalties.

I took an early 401k distribution and entered the 1099-R form and it eventually gave me the screen message that my “extra tax bill would be $xxxxx”. Ok, that is fine and knew that was coming. However, after doing all the reviews and it saying everything was good, I found that TurboTax did not file the Form 5329 so it did not actually send in the early withdrawal penalty with my payment.

Now I have to deal with this BS. Never again Intuit! Never again!

VolvoGirl

Level 15

You don't need form 5329 if you are only reporting the 10% Early Withdrawal Penalty. Didn't the additional tax show up on Schedule 2 line 8 which goes to 1040 line 23? See the line right above Part 1on 5329

https://www.irs.gov/pub/irs-pdf/f5329.pdf