Level 2

Where do I enter hardship for 401k early withdrawal-Proseries Basic

Forum|Forum|3 years ago
February 17, 2023
5 replies
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T

TaxGuyBill

Level 15

Are you asking how to enter a 1099-R?

A "hardship" does not affect the tax return.

T

Taxbreak1809Author

Level 2

My client made an early withdrawal from her 401k to purchase a home. When an early withdrawal is used for the purchase of a home or medical bills the tax payer can avoid the early withdrawal penalty on there tax return. where do I find such form if one exists?

abctax55

Level 15

You enter the info/amounts from the F 1099-R that reports the distribution. In the same area, you report the 'hardship' exclusion.

Early withdrawal penalties relate to Certificates of Deposit, usually..... do you mean the early distribution penalty?

Can't help with specifics as you didn't tell us what software you are actually using.

HumanKind... Be Both

qbteachmt

Level 15

The taxpayer should have been told there is the optional provision for the plan to allow hardship withdrawals, and there is the IRS regulation for how to treat that withdrawal. They are not related.

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