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    harshainp's Avatar
    harshainp Posts: 1, Reputation: 1
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    #1

    Feb 13, 2011, 05:08 PM
    How to report early withdrawal of 401k
    I changed my job. The previous employer closed my 401k account and refunded the money. Now I am preparing tax for 2010. I am little bit confused about where to report this in form 1040.Please advice.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Mar 7, 2011, 03:03 PM
    It is an early distribution of your 401K UNLESS you roll it over into an IRA or another 401K within 60 days of the date on the check.

    You report it on Line 16a and 16b of Form 1040. You WILL have to pay a 10% Early withdrawal Penalty, which is shown on Line #58, unless you meet an exception that can be detailed on Form 5329.

    If you need professional help filing your return, email me at [email protected].
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