Question
10% penalty on 401K withdrawals due to pandemic.
A tax client took his 401K retirement funds as a lump sum because he lost his job due to the pandemic. His 1099-R shows the income tax taken out,but it includes the 10% penalty. While preparing his return the 10% penalty was deducted from his refund. How or what do I do to get that penalty taken off. What form do I need to use or how do I go about doing this?
