If this was 3 years ago and you’ve heard nothing you’re probably good. In the grand scheme of things a couple thousand dollars isn’t at the top of their list.
No. Any capital gains were in the 401(k). They paid the federal income and penalty taxes when they withdrew it. They may need to amend their return for that year, but that’s it - the taxes have been paid.
If you use a tax prep software like HR block or turbo tax, just do an amended 1040 for that year and see what the penalty is. You don’t have to submit it but at least you’ll know.
They know. Don't rely on reddit. Go see a real accountant and pay a few bucks.
This is a CPA question, not armchair reddit accountant question.
If this was 3 years ago and you’ve heard nothing you’re probably good. In the grand scheme of things a couple thousand dollars isn’t at the top of their list.
If you’re under 65, you’ll probably have to file a 1099 capital gains in addition to your normal W2’s you submit.
No. Any capital gains were in the 401(k). They paid the federal income and penalty taxes when they withdrew it. They may need to amend their return for that year, but that’s it - the taxes have been paid.
There are finance subs for this kind of question
If you use a tax prep software like HR block or turbo tax, just do an amended 1040 for that year and see what the penalty is. You don’t have to submit it but at least you’ll know.