i had to take money out of 401 k due to disability in 2007 or so,,disability and ss approved me in 2008,,going back to 2003..i actually paid the penalty,,because it took so long..is there anyway to recoup this money...thank you
Yes, you can re-coop the penalty by amending your return using Form 1040X and claiming the exception allowed for disability on Form 5329.
In fact, you could have claimed the exception on your original tax return when you originally withdrew the money if disability was the reason for the withdrawal.
You MAY want to use a competent tax professional to file the amendment for you.
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