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Level 2

Solved

Qualified 401(k) Distribution

Forum|Forum|4 years ago
January 25, 2022
1 reply
13 views

Can I take a distribution from my Qualified 401(k) for the prior year or does it apply as income the year it is taken?

Best answer by Opus 17

Your distribution is reported when you actually get the money. You can’t take a retroactive distribution for a prior year.

If you had an RMD requirement and you missed the RMD for 2021, you would need to take that distribution now and then file a penalty waiver form to request a waiver of the penalty for missing the RMD. The IRS will usually accept a reasonable excuse as long as you show you have taken the distribution as soon as you realized the mistake. However, if this is a late RMD for 2021 and you request a waiver of the penalty, you will still need to take a new withdrawal as your RMD for 2022.

Answer

Level 15

Your distribution is reported when you actually get the money. You can’t take a retroactive distribution for a prior year.

If you had an RMD requirement and you missed the RMD for 2021, you would need to take that distribution now and then file a penalty waiver form to request a waiver of the penalty for missing the RMD. The IRS will usually accept a reasonable excuse as long as you show you have taken the distribution as soon as you realized the mistake. However, if this is a late RMD for 2021 and you request a waiver of the penalty, you will still need to take a new withdrawal as your RMD for 2022.