Marie Posted April 5, 2022 Report Posted April 5, 2022 Client drew out $80,000 , penalty free from his 401 k. He wanted to pay all the taxes in one year. Now he decides he wants to amend and divide it up into 3 years. Does that work? Quote
Pacun Posted April 5, 2022 Report Posted April 5, 2022 It is too late for 2020 but he can put back 2/3 which should be .5 for 2021 and .5 2022. Or he can put back 1/3 for 2021 and he will have a whole year to send the other 1/3. Ask him to send 1/3 now and see if the 401k holder accepts it. I have a client who sent it back sent the money with the wrong form and the custodian sent back they whole enchilada. Make sure you amend only if he is able to redeposit the money. It seems that you can use 8915-F to accommodate for 2021. Quote
Marie Posted April 5, 2022 Author Report Posted April 5, 2022 that's what I thought, but when I told my client we couldn't amend, he went to a high priced CPA firm and they amended it, so now he is paying on 1/3 of it this year and next. Do I go ahead and do it, or send him back to the cpa firm? Quote
Pacun Posted April 5, 2022 Report Posted April 5, 2022 File 2021 or amend 2020? Why will you send him back if amending 2020 is easy and not paying tax on 1/3 in 2021 is also easy. Take the client and if you have questions, we are here to help. Quote
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