We pulled from 401k because i lost my job. Do we have to pay the taxes on it still?

[szymonwrz78]

can we pay the 10% over 3 years?

[VolvoGirl]

Sorry yes.  You can avoid the 10% Early Withdrawal Penalty  if you are 55 or older.  The 3 year spread was only for 2020.

[dmertz · Accepted solution]

Since none of this distribution was rolled over, the entire distribution made in 2023 is includible on your 2023 tax return where the taxable amount and 10% early-distribution penalty will be included in determining your tax liability.  Any tax withholding shown on the Form 1099-R that you must enter into TurboTax will be credited on your tax return against the overall tax liability calculated on your tax return.

Since this is presumably not a disaster distribution, there is no option to spread the income over 3 years.