Hi, I have become disabled and had to stop working(Sept. 2007). I have to use my 401K to pay the bills. Money was taken out for the IRS, and I received a form that states the amount that was taken out. I file 1040A. My question is what form do I need to file with my 1040A? Thanks Joe L.

I hope that you are going to claim an exception to the 10% penalty for an early distribution of pension funds. There are certain allowable exceptions to the early distribution rules and you may qualify for this exclusion due to your disability which is one of exceptions allowed under the current tax law.

The form that you need to file with your tax return is Form 5329 and I think that it is best to file this form with your Form 1040 Long Form. From the instructions on the IRS tax forms, it appears that when there are additional taxes due to a pension distribution the IRS requires that the taxpayers use Form 1040.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.