401k early Distribution

[tom177]

401k early withdrawal in 2021, from my understanding under the Consolidated Appropriations Act from Dec-2020, the 10% penalty for withdrawals was extended to June 25, 2021. How do you enter the 2021 1099-R in Turbo Tax? 

[Bsch4477]

Do you qualify?

To qualify for the tax penalty exemption:

• The account owner, their spouse or dependent must have been diagnosed with COVID-19 by a CDC-approved test, or
• The account owner must have experienced adverse financial consequences as a result of COVID-19-related conditions. For example, adverse financial consequences might include a delayed start date for a job, a rescinded job offer, quarantine, lay off, job furlough, reduction in pay or hours, a reduction in self-employment income, the closing of a business, an inability to work due to lack of childcare or other factors.

[tom177]

Yes, due to loss of employment, it's up to $100k waive 10% penalty before June 25, 2021? If its over $100k for example $105K 10% penalty on the $5K?

[Bsch4477]

Sounds correct.