[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.

[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?

Personal Finance

!personalfinance@lemmy.ml

Community stats

Community moderators