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Returning Member
posted Feb 15, 2021 10:16:06 AM

Where do I enter the early 401-k withdrawal exception

I had an early distribution of 401k for $3,500 in 2020 when I am only 59 years old.  I was being furloughed on my job during Cov-19.  Can anyone tell me where do I enter the exception on TurboBox to have the penalty waived?  I read the exception guideline and I am qualified for the penalty exception but TurboTax does not seem to allow me to do it?  Thank you.

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2 Replies
Expert Alumni
Feb 15, 2021 10:31:56 AM

At this time, the Form 8915-E (Qualified 2020 Disaster Retirement
Plan Distributions and Repayments (Use for Coronavirus-Related Distributions)) is not finalized.

  • The 8915-E Form is projected to be e-fileable starting 02/24/2021

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

 

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

As things change, TurboTax is continually updated and able to handle every situation that arises to ensure your taxes are done right, so you’ll receive your maximum refund. 

 

 

Returning Member
Feb 15, 2021 11:19:26 AM

Thank you so much for your quick reply. I will look out for TurboTax update in couple weeks.