So I had a baby in 2024 and took out of my 401k but the amount shows is 2k but it’s asking how much did I take out which was only up to $500 at the time

[alyssa23978]

So should I add 2k or should I keep it to what I received ?

[KrisD15]

There is an exception to the early withdrawal tax penalty (from a 401(K) account) for a birth of a child.

The amount withdrawn can be as much 5,000 and must be made within one year of the child's birth.

Concerning your question, do you mean 5,000 or 500?

Do you mean you took 2,000 but only 500 at the time the child was born?

Was this all done/reported in tax year 2025 or 2024? Or was some money withdrawn in 2024 and some withdrawn in 2025 and you received a 1099 for BOTH years?? 

[alyssa23978]

So when I had my son I took out $500 as that’s the only amount I was allowed to take out. However when I received the tax transcript from Fidelity they advised on the paper it was $2098 shown so when I added my taxes in the section for 401k it asked if I had a exception like a qualified birth which I did and I put the amount of $2098 cause I was unsure 

[alyssa23978]

Plus I did take the amount of money as I changed employers so maybe that’s why they have that full amount of $2098 and shows federal they took out like $269 so that’s why I was wondering, but I don’t know. I just pushed my taxes through and it says it was accepted by the IRS so that was this morning. I got a message that I was accepted

[Opus 17]

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@alyssa23978 wrote:

So when I had my son I took out $500 as that’s the only amount I was allowed to take out. However when I received the tax transcript from Fidelity they advised on the paper it was $2098 shown so when I added my taxes in the section for 401k it asked if I had a exception like a qualified birth which I did and I put the amount of $2098 cause I was unsure 

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If you took a withdrawal, you will get a 1099-R.  The IRS will delay your refund if the amount you report on your tax return does not match the 1099-R.  If you think the 1099-R is wrong, contact Fidelity and ask for an explanation, and maybe it needs to be corrected. 

However, loans are not included on a 1099-R and not reported on your tax return, as long as you are repaying the loan.  So if you took out a loan or a combination of loans and withdrawals, the amount you received will be different than the amount that counts as a withdrawal. 

[alyssa23978]

it wasn’t a 1099 R I received this is what it shows 

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[Opus 17 · Accepted solution]

@alyssa23978 

That is in fact a 1099-R.  It shows you withdrew a gross amount of $2059, with $269 tax withheld, so you should have received a check for $1790.  If your check was less and you don't understand why, contact the plan customer service. 

On your tax return, the gross amount of $2059 is subject to income tax.  You will get credit for the $269 withholding.  If you withdrew the money within 1 year after the birth of your child (but not before) you can claim an exemption for the additional 10% penalty for early withdrawal (but you still owe the regular income tax).  Enter the 1099-R in the section for Retirement Income.

But again, if you think the amounts are wrong you need to discuss with Fidelity.