How can abate the 10% early withdrawal penalty for I live in a federally declared disaster area,

[jessiedeshazo]

I took out money from my 401K and want to declare Federal Disaster area to abate the 10% early withdrawl penaly

[MindyB]

Since you lived in a federally declared disaster area, you can abate the penalty on up to $22,000 of distributions.

Here's how to enter this in TurboTax Online:

1. Navigate to Federal > Wages & Income > IRA, 401(k), Pension Plan Withdrawals (1099-R) Add/Edit
2. Edit the 1099-R if you have already begun entering the information or Add a 1099-R
3. Enter the information from the 1099-R
4. Continue through interview, on the screen Do any of these situations apply to you? choose I took out this money due to a qualified disaster
5. Continue through interview, you will be asked Was this a withdrawal due to a 2023 or 2024 Qualified Disaster?, select the appropriate year.

[QDI2023]

This does not work. The message says to check back because it is not in this release.  When will you have the system updated to handle this?

[SharonD007]

Form 8915-F is the form that needs to be completed for your Qualified Disaster Retirement Plan distribution, but it's not quite ready yet for e-file. TurboTax is working to get Form 8915-F ready. You can check when the form will be available by using this link.

Review the TurboTax article What is Form 8915-F Qualified Disaster Retirement Plan Distributions and Repayments?  and How does filing Form 8915-Disaster Distributions impact my state taxes? for more information.

[lharris6676]

I suffered from two separate federally declared disasters in one year. Is the $22,000 per disaster?

[AmyC]

Yes, it is per disaster since 2021. You will need to fill out the information per disaster.

Reference: Retirement plans and IRAs under the SECURE 2.0 Act