I withdrew from my retirement account last year as part of disaster relief. I was asked if I wanted to have the 10% penalty on the distribution taken out at the time, so I said yes. Now when I am filing my taxes it looks like another 10% has to be paid. I don't understand why it is 20% total especially when it was for disaster relief. Can someone help explain how that works because I have not been able to figure this out?
In order to make sure the 20% penalty is not incurred for Qualified 2017 Disaster Retirement Plan Distributions and Repayments, Form 8915, Qualified Hurricane Retirement Plan Distributions and Repayment needs to be used.
Normally this form is created when you answer questions concerning your retirement distributions. Look for the question "Was this distribution due to Hurricane Harvey, Irma, or Maria?" When you answer "yes," the form will be added to your return .