topic 401K covid distribution - rolled over 10K in Debt management

401K covid distribution - rolled over 10K

robken1145 — Tue, 10 Feb 2026 09:42:23 GMT

took complete 401k of $ 66K Distribution in April 2020.. Rolled over 10K before 60 days. So i was taxed on entire amount and I claimed 56K on tax return. I withdrew entire 10K that I had rolled over. Do I have to pay 10% penalty because I am only 59, since it was part of the entire 66K distribution during covid?

Re: 401K covid distribution - rolled over 10K

robken1145 — Mon, 22 Jan 2024 20:59:11 GMT

Just to be clear. I withdrew the 10K in April 2023.. 3 years later. I forgot to mention that.

Re: 401K covid distribution - rolled over 10K

MinhT1 — Mon, 22 Jan 2024 22:48:55 GMT

You will receive a form 1099-R for the $10k withdrawal by the end of January 2024.

You have to report that form 1009-R on your tax return and you will pay income tax on that amount and also a 10% early withdrawal penalty as you are younger than 59 1/2.

The waiver of the penalty only applies to your net withdrawal of $56k in 2020, not on the withdrawal in 2023.