Can an "involuntary termination" of 401K be considered for the "other" option in not paying additional taxes on this money.?

[taralwallace]

my 401k was involuntarily temriantion and a check was sent  with taxes taken out, now I'm being additionaly taxed for early withdrew However I didn't request it. Can this fall under the "other" category when trying to not be taxed on it.

[BillM223]

It used to be that if your employment was terminated and your 401(k) plan had less than $5,000 in it, the employer could just close out your plan and send you a check. Now the IRS prefers that the employer roll your balance over to an IRA, which would have been much m....

Do you already have an IRA? And has it been more than 60 days since the check was received? If so, quickly - very quickly - deposit the check into your IRA, so that it become a rollover from your 401(k) plan to an IRS, thus erasing both the penalty and the income tax.

Otherwise, unless you are 55+, you are out of luck.

[dmertz]

To directly answer the question, no, this is not a reason that qualifies as an Other reason exception.  Even if it did, it would only eliminate the early-distribution penalty on this distribution, not the income tax.

Unless you waived the obligation, at least 30 days prior to making the distribution the employer was required to provide you with a written statement regarding your options to roll over the distribution to another retirement account and continue to defer this income.  Failure by you to exercise one of these options is not a reason that  you would qualify for a penalty exception.  (If the employer failed to provide you with the required written explanation, which is unlikely, you might be able to do a late rollover under IRS Rev. Proc. 2020-46.)