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.

    • dohpaz42@lemmy.world
      English
      1·
      5 months ago

      They screw up your 401k, probably to the tune of millions, and you get McD’s out of it. God bless America. 🫡