I took a withdraw in 2020 from my 401k for Covid Relief. It was posted on a 2021 1099-R. How can I still Qualify to not take the 10% tax penalty on the Relief Withdrawal?

[zmelvin1992]

As stated above, there was a withdrawal for covid relief in 2020 and it was not posted till 2021. Therefore it is on a 2021 Form 1099-R. How do I avoid the 10% penalty since it was for Covid relief?

[DavidD66]

In order to avoid the 10% penalty, you will need to have the 401(k) administrator issue you a corrected 1099(R) and then file an amended return.  The exemption from the 10% excise tax/penalty for early withdrawals due to coronavirus is limited to 2020 distributions.

[fanfare]

Did you act very late in the year to request a COVID-related distribution?

you are liable to custodian paperwork delays in processing your request.

Your distribution must have taken place before Dec 31, 2020 to qualify.

If not you are out of luck.

[zmelvin1992]

The withdrawal took place on May 17, 2020.

[fanfare]

If you received the money in 2020, then you need a corrected 1099-R or you will be paying the tax twice.