Question

How can abate the 10% early withdrawal penalty for I live in a federally declared disaster area,

Forum|Forum|1 year ago
February 28, 2025
1 reply
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I took out money from my 401K and want to declare Federal Disaster area to abate the 10% early withdrawl penaly

M

MindyB

Since you lived in a federally declared disaster area, you can abate the penalty on up to $22,000 of distributions.

Here's how to enter this in TurboTax Online:

Navigate to Federal > Wages & Income > IRA, 401(k), Pension Plan Withdrawals (1099-R) Add/Edit
Edit the 1099-R if you have already begun entering the information or Add a 1099-R
Enter the information from the 1099-R
Continue through interview, on the screen Do any of these situations apply to you? choose I took out this money due to a qualified disaster
Continue through interview, you will be asked Was this a withdrawal due to a 2023 or 2024 Qualified Disaster?, select the appropriate year.

Q

QDI2023

This does not work. The message says to check back because it is not in this release. When will you have the system updated to handle this?

SharonD007

Form 8915-F is the form that needs to be completed for your Qualified Disaster Retirement Plan distribution, but it's not quite ready yet for e-file. TurboTax is working to get Form 8915-F ready. You can check when the form will be available by using this link.

Review the TurboTax article What is Form 8915-F Qualified Disaster Retirement Plan Distributions and Repayments? and How does filing Form 8915-Disaster Distributions impact my state taxes? for more information.

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