If i withdrawal money from my 401k (IRA) what situation might apply to not paid additional taxes?

[saintilhe]

taxes brakeage

[ColeenD3]

The only tax break involves being affected by COVID. Otherwise, your Box 2 amount is taxable. If you withdrew the money before age 59.5, there is also a 10% penalty for early withdrawal.

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.