Does the 10% Penalty on Early Withdrawal still apply if the Corporation mandated withdrawal of ALL pension funds for all employees? The fund was 100% paid for by the Corporation.
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Many thanks IRonMaN, Ironically, I had another client already that is using Form 8915-E and spreading out the tax over 3 years. I believe I can use the same technique but pay the tax in 2020. As long as this takes the 10% penalty away everyone should be happy.
Very much appreciate your very quick response. Have a great tax season and a long vacation this summer.
Bob
lovetaxes
They could have rolled it over. But then again, if it was COVID related you might be exempt from the penalty. Forms 5329 and 8915E could be your friends.
Many thanks IRonMaN, Ironically, I had another client already that is using Form 8915-E and spreading out the tax over 3 years. I believe I can use the same technique but pay the tax in 2020. As long as this takes the 10% penalty away everyone should be happy.
Very much appreciate your very quick response. Have a great tax season and a long vacation this summer.
Bob
lovetaxes
You betcha!
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