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Level 2
posted Feb 3, 2021 2:32:01 PM

Can I use IRS form 5329 if I’m claiming all Covid 401k withdrawal this year? As opposed to 8915e.

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2 Replies
Level 15
Feb 3, 2021 2:49:02 PM

The instructions for 2020 Form 5329 say that you can report an Other reason exception on the amount of the coronavirus-related distribution.  However, the draft instructions for Form 8915-E say that you must file Form 8915-E if you received a coronavirus-related distribution.  If you report just an Other reason exception on Form 5329, it's likely to be questioned by the IRS.

Level 15
Feb 3, 2021 2:54:09 PM

I've revised by previous reply to suggest that filing just Form 5329 to claim an exception might be questioned by the IRS.