Question #33287. Asked by chui. (May 08 03 10:06 PM) In Thomas Love Peacock's satirical novel Headlong Hall (1816) there appear two high-flown nonce words (one-off coinages) which describe the human body by stringing together adjectives describing its various tissues.
10% Penalty for Early 401k Distributions â The main 401k withdrawal penalty is the 10% additional tax that is incurred for taking an âearly distributionâ. An early distribution occurs when 401k funds are withdrawn before reaching age 59-1/2.The 10% penalty is in addition to the regular income taxes that must be paid on amounts withdrawn. (Remember: you did not pay income tax when you contributed funds to the 401k plan so the IRS gets its share when you take money out.).n early distribution occurs when 401k funds are withdrawn before reaching age 59-1/2. The 10% penalty is in addition to the regular income taxes that must be paid on amounts withdrawn. (Remember: you did not pay income tax when you contributed funds to the 401k plan so the IRS gets its share when you take money out.).
Figure the penalty or document your exception on Form 5329, and include it with your Form 1040 when you file your taxes. Step 1. Report your early 401(k) plan withdrawal on Line 16b of Form 1040. The amount of the distribution is reported in Box 2a of Form 1099-R. This amount adds to your taxable income for the year.Step 2. Report the total amount of your early 401(k) plan withdrawal on Line 1 of Form 5329.Step 3. Report the amount of the early 401(k) plan withdrawal that qualifies for the early withdrawal penalty exception on Line 2, if any.tep 2. Report the total amount of your early 401(k) plan withdrawal on Line 1 of Form 5329. Step 3. Report the amount of the early 401(k) plan withdrawal that qualifies for the early withdrawal penalty exception on Line 2, if any.