Ask Experts Questions for FREE Help !
Ask
    2twins's Avatar
    2twins Posts: 4, Reputation: 1
    New Member
    		  
    #1

    Sep 24, 2009, 06:11 AM
    401k penalty recoop
    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:)
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Sep 24, 2009, 08:52 AM
    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.
    2twins's Avatar
    2twins Posts: 4, Reputation: 1
    New Member
    		  
    #3

    Sep 24, 2009, 11:36 AM
    Thanks so much for the info.. will talk to my tax person asap... wish I new this before... thanks again
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Sep 24, 2009, 02:26 PM
    Glad to help!
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

401k 10% penalty [ 2 Answers ]

Hi, I received a letter from the IRS today that I need to pay the 10% tax on the 401k that I claimed the following year. My company closed and I withdrew all my money out of my 401 k to save my house. I paid off ALL my bills so I would not loose my house. Can I file a hardship letter to avoid...

401k penalty [ 3 Answers ]

If you were to pull money out of a 401k and have to pay the taxes on the early withdrawal - I understand this cost. The question that I have is that if you put in say $100,000 into the 401k and it is only worth $80,000 now, are you able to write off the $20,000 in reduced value? The logic is...

401K penalty [ 2 Answers ]

Hello, I would like to know when you take out your 401K money, do you have to pay the penalty right away or can you pay it at a later date. When I say right away, meaning during tax time. Please advise Thank you, Lisa

401K Penalty [ 1 Answers ]

If I withdraw money from my 401K and replace the money within a short period am I still penalized?

401K Penalty [ 12 Answers ]

Hello, I am wondering if you can "guesstimate" what my loss would be if I chose to take out a lump sum withdrawal on my 401K. First some background. I am not close to being 59 1/2 years old (or my spouse). I live in a state with no state income tax. I have 3 children under the age of 18 and a...

View more questions Search