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deanbaustin64
New Member

When will Turbo Tax have the updated information from the IRS regarding NO 10% PENALTY for early 401K withdraws due to disaster COVID-19?

I took a 401K distribution of $100,000 in April 2020. Turbo Tax still in saying I owe the IRS the 10% Early Withdraw penalty of $10,000. When will this get fixed in Turbo Tax?
10 Replies
MinhT1
Expert Alumni

When will Turbo Tax have the updated information from the IRS regarding NO 10% PENALTY for early 401K withdraws due to disaster COVID-19?

The Coronavirus-related relief measures for retirement plan distributions have to be reported on form 8915-E which has not yet been finalized by the IRS. No date has been announced yet by the IRS.

 

TurboTax will update this section shortly after the IRS releases the final version of form 8915-E and its instructions.

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vjfernandez17
Level 1

When will Turbo Tax have the updated information from the IRS regarding NO 10% PENALTY for early 401K withdraws due to disaster COVID-19?

Any updates? Will this be updated in time to properly file this year? 

pattif12
Expert Alumni

When will Turbo Tax have the updated information from the IRS regarding NO 10% PENALTY for early 401K withdraws due to disaster COVID-19?

CARES Act and 1099-R Withdrawal.

 

The software has not been updated yet because the form has not been finalized by the IRS. Once the software has been updated, you will be prompted through the form with instructions on how to enter the information.

 

The IRS has not provided a release date for the form at this time. Use this link IRS Form Availability to watch for when the 8915-E form will be available in the software once the IRS completes it.

freekie
Level 2

When will Turbo Tax have the updated information from the IRS regarding NO 10% PENALTY for early 401K withdraws due to disaster COVID-19?

It appears the form is now Ready.  When can we expect turbo tax to be updated?

ReneeM7122
Level 8

When will Turbo Tax have the updated information from the IRS regarding NO 10% PENALTY for early 401K withdraws due to disaster COVID-19?

Form 89150E, Retirement Plan Distributions under the Cares Act was finalized by the IRS on February 11, and should be available on TurboTax for e-file around February 24th.

 

Here is a link on the IRS website that discusses the relief for early withdrawal on retirement plan due to Coronavirus.

 

 

@freekie

vjfernandez17
Level 1

When will Turbo Tax have the updated information from the IRS regarding NO 10% PENALTY for early 401K withdraws due to disaster COVID-19?

Does Turbo Tax have a new date? I just went on to try and complete my taxes and file and the old message regarding the IRS not having it completed and having to revisit the area still appeared. 

DoninGA
Level 15

When will Turbo Tax have the updated information from the IRS regarding NO 10% PENALTY for early 401K withdraws due to disaster COVID-19?


@vjfernandez17 wrote:

Does Turbo Tax have a new date? I just went on to try and complete my taxes and file and the old message regarding the IRS not having it completed and having to revisit the area still appeared. 


Form 8915-E, Qualified 2020 Disaster Retirement Plan Distributions and Repayments is scheduled to be available in TurboTax on 02/25/2021

Go to this website for IRS forms availability in TurboTax - https://care-cdn.prodsupportsite.a.intuit.com/forms-availability/turbotax_fed_online_individual.html

CatinaT1
Expert Alumni

When will Turbo Tax have the updated information from the IRS regarding NO 10% PENALTY for early 401K withdraws due to disaster COVID-19?

The date was updated to February 25th.  This is generally by the end of the day, not first thing in the morning.

 

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

 

In the mean time, you can make sure you are eligible for the provision here - Coronavirus Relief

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ejstamps
New Member

When will Turbo Tax have the updated information from the IRS regarding NO 10% PENALTY for early 401K withdraws due to disaster COVID-19?

Any update on when this update will be pushed to your tax program?  it is now April 11th and it looks like the IRS has finalized the form.

 

Thanks

DoninGA
Level 15

When will Turbo Tax have the updated information from the IRS regarding NO 10% PENALTY for early 401K withdraws due to disaster COVID-19?


@ejstamps wrote:

Any update on when this update will be pushed to your tax program?  it is now April 11th and it looks like the IRS has finalized the form.

 

Thanks


The Form 8915-E was made available across all TurboTax programs, online and desktop, on 02/25/2021.

If you are using the TurboTax desktop program you need to update your software.

For a Windows based PC click on Online and Check for Updates.

The current version is 020.000.1694.  Click on Help>About TurboTax>Version

 

Delete the Form 1099-R that you entered.  Enter the Form 1099-R manually.  After entry of the form you will be asked a series of questions concerning the distribution.  Select this distribution was due to Covid-19

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