Your new client, Mustafa, had a tree fall on his house during a tornado in Georgia on March $25,2021.$He took out $$15,000$ from his $401$K to pay for the related home repairs. $$He paid income tax, as well as the early withdrawal penalty, on the withdrawal on his $2021$ tax return.$$ Which of the following options would be worth considering in the case of Mustafa's $2021$ withdrawal?

Review Later

Let's look at amending the $2021$ tax return to eliminate the early withdrawal penalty

Let's look at spreading out the reporting of the withdrawal into three years on Form $8915-$F and see if that decreases your tax on the withdrawal

Both A and B are options worth considering

Neither A nor B will work $--$ the statute of limitations for claiming a refund from a $2021$ tax return expired on April $17,2024$