How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask USTaxAdvising Your Own Question

USTaxAdvising, CPA
Category: Tax
Satisfied Customers: 1188
Experience:  US Taxation specialist.
Type Your Tax Question Here...
USTaxAdvising is online now
A new question is answered every 9 seconds

I withdraw six times from my 401k investment last year. Within

Resolved Question:

I withdraw six times from my 401k investment last year. Within 2 months from my first withdraw, I paid it back. Does this means that I don't have to pay penalty and income tax for my first withdraw. How do I report to IRS?
Submitted: 1 year ago.
Category: Tax
Expert:  USTaxAdvising replied 1 year ago.



Basically correct yes. There is an exception to the penalty and taxation on the distribution if you recontribute the cash received into another qualified plan or back into the original 401K account. See below.


Rollovers from a 401(k) plan. A rollover occurs when the participant receives a distribution of cash or other assets from one qualified retirement plan and contributes all or part of the distribution within 60 days to another qualified retirement plan or traditional IRA. This transaction is not taxable but it is reportable on Form 1099-R and the participant's federal tax return. A participant can roll over most distributions except for:

  • A distribution that is one of a series of payments based on life expectancy or paid over a period of ten years or more,
  • A required minimum distribution,
  • A corrective distribution of excess deferrals or contributions (including income allocable to these amounts),
  • A hardship distribution, or
  • Dividends on employer securities.

Any taxable amount that is not rolled over must be included in income in the year received. If the distribution is paid to the participant, he or she has 60 days from the date received to roll it over. Any taxable distribution paid to a participant that is eligible for rollover is subject to mandatory withholding of 20%, even if the participant indicates that he or she intends to roll the distribution over later. If the participant is under age 59 ½ at the time of the distribution, any taxable portion not rolled over may be subject to a 10% additional tax on early distributions (described below).


See link here for additional information -


Best regards,

Customer: replied 1 year ago.

The money I withdraw is th pay my credit card. After 1 month, I have money to pay it back. Does this means I don't have to pay penalty and income tax?

Expert:  USTaxAdvising replied 1 year ago.

Hello Yung,


Yes this is correct. If you withdraw with the intent to rollover to another account you have sixty days to do it or return the funds to the original account.


If you withdraw funds from your 401K with the intent of spending it then it would be taxable and the penalty would apply if you are over 59 1/2.


Your intended use of the funds is the driving factor to determine if there is a taxation event. If you can prove that you intended to rollover the funds to another account I believe you are in the clear (i.e. not taxable) but if you can't prove that intent then unfortunately the penalty and tax will apply.


Best regards,

USTaxAdvising, CPA
Category: Tax
Satisfied Customers: 1188
Experience: US Taxation specialist.
USTaxAdvising and other Tax Specialists are ready to help you

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Previous | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA

Meet The Experts:

  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    10 years experience
< Last | Next >
  • Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    10 years experience
  • Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    15+ years tax preparation and tax advice.
  • Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • Richard's Avatar


    Tax Attorney

    Satisfied Customers:

    29 years of experience as a tax, real estate, and business attorney.
  • jgordosea's Avatar


    Enrolled Agent

    Satisfied Customers:

    I've prepared all types of taxes since 1987.
  • MequonCPA's Avatar


    Certified Public Accountant (CPA)

    Satisfied Customers:

    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
  • R. Klein, EA's Avatar

    R. Klein, EA

    Enrolled Agent

    Satisfied Customers:

    Over 20 Years experience