I withdrew funds from 401k pertaining to the cares act guidelines which is no penalty and 3 years to pay the taxes? How do I enter that on my return?

[josephsyl44]

It is not a loan and does not need to be paid back but I do have to pay federal tax on it. Turbo tax has me at a standard deduction and I am unable to  submit the distribution

[ColeenD3]

Form 8915 -E is not yet finalized by the IRS.

At this point and time the Form 8915-E (Qualified 2020 Disaster Retirement

Plan Distributions and Repayments (Use for Coronavirus-Related Distributions)) is not finalized. We currently do not have an estimated date when the form is ready.

Please sign-up here and we will email you once the form is live.

Those who qualify as individuals directly impacted by the pandemic will be able to withdraw up to $100k from their retirement accounts without facing the 10% early withdrawal penalty.

You qualify if:

• You, your spouse, or your dependent are diagnosed with COVID-19
• You experience adverse financial consequences as a result of being quarantined, furloughed, or laid off
• You had work hours reduced to COVID-19
• You’re unable to work due to child care closure or hour reduction

The distribution would be taxed over 2020, 2021, and 2022. You’ll have that time to pay back the funds you withdrew, without the amount impacting that year’s cap on contributions, and if you pay back the amount within that time, you’ll be able to claim a refund on those taxes.

[TonyDColar]

can I avoid taxes on the 401K distribution if im able to put the money back in the account within three years

[SamS1]

Yes you can. The form you need will be available soon.  Form 8915-E: Qualified 2020 Disaster Retirement Plan Distributions and Repayments, which is used for COVID-related early distributions, will be e-fileable starting 2/24.  The IRS is updating form 5329’s instructions to make it clear that COVID related exceptions cannot use 5329 and should use the new 8915-E.