570 Code on Transcript - Connection to 401k Early Withdrawal?

Yes! I had exactly this situation. I took out $8,750 from my 401k in December 2023, filed on February 3rd, and got a 570 code on February 21st. Nothing else appeared for exactly 14 days. Then I got a 971 notice issued code, followed by 290 and 571 codes 3 days later. My refund was finally deposited on March 17th, which was 42 days after filing. From what I can tell, they're verifying the 1099-R information against what you reported.

I had a 570 code last year with a 401k withdrawal. The IRS was double-checking that I had the correct withholding amount on the distribution. My tax software calculated everything right, but they still held it for review. It took about 3 weeks longer than normal. Just be patient and keep checking your transcript. You'll probably see a 971 code next which means they're sending you a letter. Don't panic - in my case it was just informing me they were reviewing it.

Yep, I've got a 570 code right now too! 🙃 Took out $12k from my 401k to cover some medical bills (which I thought would qualify for the penalty exception, but who knows). Filed on March 1st and got the 570 code on March 21st. Nothing since then. I'm seriously stressing because I need that refund to pay off the credit card I used for the rest of the medical expenses. Funny how they're quick to take our money but sooooo slow to give it back, lol. Really hoping this doesn't drag on much longer.

Have you tried calling the IRS to ask about your 570 code specifically? I was in a similar situation with a 401k withdrawal and couldn't get through on the regular IRS line for days. Kept getting disconnected or told the wait was over 2 hours. I finally used Claimyr (https://claimyr.com) and got connected to an agent in about 15 minutes. The agent confirmed that my 401k distribution was under review but everything looked correct, and my refund was released the following week. I was surprised at how much detail they could actually provide about what was happening with my return. Definitely worth the fee to avoid the frustration of constant redialing.

BE CAREFUL with 401k withdrawals! I had a 570 code last year that turned into an AUDIT because I didn't properly report the early withdrawal penalty. I thought I qualified for an exception (first-time home buyer), but I missed some fine print about the timing. The IRS ended up adjusting my refund down by over $2,000 AND I had to pay interest because it took so long to resolve. If your 570 code is related to a 401k withdrawal, I'd strongly recommend double-checking all your documentation NOW before they contact you. The stress of dealing with their requests for additional information was awful!

I think there might be several different reasons for 570 codes, not just 401k withdrawals. Here's what I've learned from my experience: Step 1: 570 means "additional account action pending" - it's basically a hold on your refund Step 2: This can be triggered by income verification, credits review, or document matching Step 3: For 401k withdrawals specifically, they're matching your 1099-R against what you reported Step 4: If everything matches, you'll usually see a 571 code (release of hold) within 2-3 weeks Step 5: If there's a discrepancy, you'll get a 971 code (notice issued) explaining the problem I had a 570 code but it was because of education credits, not my 401k withdrawal. So while there might be a pattern with 401k withdrawals, it's not the only trigger for 570 codes.

I believe, based on what I've seen in various tax forums and my own experience, that the 570 code appears more frequently with certain types of income that require additional verification. Early 401k withdrawals seem to be one of those triggers, possibly because the IRS wants to verify that the 10% penalty was properly applied (or that an exception was properly claimed). It might also be worth checking if your withdrawal was coded correctly on the 1099-R you received - specifically box 7 which shows the distribution code. Sometimes the financial institution uses the wrong code, which can cause a mismatch when the IRS processes your return.

Had 570 code. Had 401k withdrawal. Was verified. Took 31 days. Got full refund. No changes made. Seems common this year. Check transcript weekly. Look for 971 next. Then 571. Good luck.

My 570 code had nothing to do w/ 401k stuff. Was because I accidentally entered my W2 info twice (facepalm). IRS caught it, fixed it, adjusted my refund down a bit. Took about 5 wks total. IMO the 570 is just their generic "we need to look at something" code - could be 401k withdrawal, could be something else entirely. My bro had one for his student loan interest deduction last yr. Just how the IRS rolls these days tbh.