turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Oct 16 is the IRS deadline–file confidently with expert help. File Now
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

jvdnl223
New Member

I'm currently retired. Will I have to pay the 10% penalty if I go back to work? If so will it be retro active to when I started withdrawals from my 401K?

I retired at age 57 and started withdrawals from my 401K, I was not penalized the 10% since I separated from the company, I'm now 58 years old and may back to work part time for a different company, Will I have to pay the 10% penalty if I go back to work? If so will it be retro active to when I started withdrawals from my 401K?

1 Best answer

Accepted Solutions
dmertz
Level 15

I'm currently retired. Will I have to pay the 10% penalty if I go back to work? If so will it be retro active to when I started withdrawals from my 401K?

Any employment that you have with a different employer will not affect the age 55 penalty exception that you have for distributions from the 401(k) plan provided by your old employer.  Your old employer should continue to issue Forms 1099-R with code 2 until you reach age 59½, at which time they will change to code 7.

View solution in original post

1 Reply
dmertz
Level 15

I'm currently retired. Will I have to pay the 10% penalty if I go back to work? If so will it be retro active to when I started withdrawals from my 401K?

Any employment that you have with a different employer will not affect the age 55 penalty exception that you have for distributions from the 401(k) plan provided by your old employer.  Your old employer should continue to issue Forms 1099-R with code 2 until you reach age 59½, at which time they will change to code 7.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing
Manage cookies
v