Feb, 24 I withdrew $5000 from 401k paid the 10% taxes. Can I make $5000 contribution to 401k before Apr2025 and not have to claim the $5000 withdrawal on my 2024 taxes?

[xmasbaby0 · Accepted solution]

No.  You will get a 1099R for the money you took out of the 401k and you will need to enter that on your tax return.   It is too late for you to repay it and call it a "roll over."  You  had sixty days for that.   You will owe tax.

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

[xmasbaby0]

The 10% that you "paid" was just withheld from the distribution, like when you have federal tax withheld from your paychecks.    If you are under 59 1/2 there is a 10% early withdrawal penalty and there may be ordinary tax on the distribution too.   When all of your income and all of the tax withheld from your various sources of information are entered into the program, your tax due or refund will be calculated.

[Opus 17 · Accepted solution]

You cannot contribute extra to a 401k except through payroll deductions, and any contributions made in 2025 will be counted as 2025 contributions.  The rule about making contributions for 2024 up through April 2025 only applies to IRAs.  Even though the plans are similar, they have different rules.

If you are eligible to make new deductible contributions to an IRA (based on your age, filing status and income), then you could open an IRA at a bank or broker of your choice, contribute some money, and the new deductible contribution would reduce your income and offset the income realized from the withdrawal, but you have to report both transactions.  And, if you are under age 59-1/2, you will be assessed a 10% penalty for early withdrawal that will not be offset by the new contribution.  Any withholding from the distribution will go to your credit on your tax return and will add to your refund or reduce the amount you owe after all your income, deductions, penalties and other taxes are taken into account.  

The rules for deducting IRA contributions depend on whether you are working, your overall income and filing status, and whether you are covered by a retirement plan at your current job.  (You don't say if you are working or retired, and you don't say if the 401k you withdrew from is at your current employer or a former employer, so check the rules carefully.)

https://www.irs.gov/retirement-plans/ira-deduction-limits