[USA] [401K] I was in a settlement for a class action lawsuit involving a 401k. I just received a 1099r. Box 7 has code "7"; I am under the age to withdraw without penalty. Will i receive a penalty?
Sorry for long title:
- USA
- in a state with no state income tax
- my former employer (international corporation) messed up 401ks, resulting in class action lawsuit
- settlement gave claimants <$20 each
- just received a 1099r for this amount
- box 7 = “7”, which means normal distribution per IRS
- I am under 59.5
I don’t understand the table on the IRS website. Just wondering if there will be a penalty for this settlement “distribution” or if it is waived since it was part of a lawsuit. I usually do my taxes by myself so I don’t have anyone to ask.
Add comment