You can/should have tax withheld from the distribution at the time you request it. In late January to late February you will get a 1099R that you enter onto your tax return. The 1099R will show how much you took out of the retirement account and how much tax was withheld. The tax software will calculate all of your income and all of the tax withheld from the various sources of income to determine if you owe more or get a refund.
To enter your retirement income, Go to Federal> Wages and Income>Retirement Plans and Social Security>IRA 401 k) Pension Plan Withdrawals to enter your 1099R.
I PAID TAX ON THE RETIREMENT MONEY ALREADY
You had tax withheld from the distributions from the retirement account, just like when an employer withheld tax from your paychecks. When you enter it all into the software, the calculations are done to reconcile the amount of income you received and the amount of tax that was withheld. You might owe more or you might get a refund.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
