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Level 1
posted Mar 2, 2020 5:17:56 AM

Why do I have to pay $260 to cash $900 out of my 401k thats way more than the 10 percent penalty and i had an exemption

Why do I have to pay $260 to cash $900 out of my 401k thats way more than the 10 percent penalty and i had an exemption.

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1 Replies
Expert Alumni
Mar 2, 2020 7:31:31 AM

Did your tax increase that much immediately before and after you entered the form or it that the amount of tax you owe? You are subject to both tax and a penalty. Did you enter the exemption in the program? Compare your 2018 and 2019 returns to see any discrepancy.