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Level 2
Apr 6, 2024 2:57 AM UTC
Question

401K Early Withdrawal Fee Avoidance - Possible Repayment?

I made an early withdrawal from my 401K at the end of last year.  At the time, I paid federal and state taxes but didn’t realize I would ALSO have to pay a penalty when I filed my taxes.  Is there any way I could somehow avoid the penalty by returning the money back into the 401K this year before I file my taxes?  I have already done the research and I don’t qualify for any of the withdrawal exceptions listed.  I realize it’s a long shot but I’m looking at a hefty penalty + taxes already incurred so any advice would be greatly appreciated.  Please help.

2 replies

Level 15
Apr 6, 2024 3:05 AM UTC

Unfortunately you can’t avoid the penalty by returning the distribution. 

Mike9241
Level 15
Level 15
Apr 6, 2024 7:32 AM UTC

Sorry. you had 60 days from the date of withdrawal to put it back or put it into another retirement account such as an IRA. 

Mike9241