covid qualified early withdrawal from a 401k

Forum|Forum|5 years ago
February 11, 2021
7 replies
40 views

Any reason not to use form 5329 to report a qualified covid early distribution form a 401k? taxpayer does not wantt to spread it over three years nor pay back any of the distribution. They do not want to wait for form 8915-E to be ready.

ProSeries Professional

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Best answer by IRonMaN

Because there is some fine print that the 8915E must accompany the 5329 with the return for the exception to be valid.

IRonMaNAnswer

Level 15

Because there is some fine print that the 8915E must accompany the 5329 with the return for the exception to be valid.

Slava Ukraini!

Camp1040

Level 10

That fine print will get you every time, seems like I ran into something like that also.

Acme counter: 623,759

IRonMaN

Level 15

Thanks for the count update. I needed to get the backup counter in sync since I knew it was off. It was showing 623,758.1487514847362177237199999. I think the thryroid plate needs to be replaced but I was hoping to make it last until 2/25.

Slava Ukraini!

qbteachmt

Level 15

"They do not want to wait for form 8915-E to be ready"

This is what you are waiting for:

"Line 9. If you don’t check the box on line 9, you must spread the amount on line 8 over 3 years. By checking the box, you elect to include the entire amount in income in the year of distribution."

So, I guess they don't get what they want.

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