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Level 2
posted Jan 21, 2021 5:46:39 PM

Why is the system not recognizing COVID distributions from 401k plans? I should not be paying a 10% penalty.

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1 Replies
Level 15
Jan 21, 2021 6:35:54 PM

The exception to the 10% penalty for a coronavirus-related distribution requires Form 8915-E. But the IRS has not yet published Form 8915-E. I'm sure that TurboTax will incorporate the form as quickly as they can after the IRS publishes the form and its instructions.