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Retirement tax questions
The taxable amount of the distribution as reported on Form 1099-R in box 2a is entered on a tax return as ordinary income and taxed at your current tax rate.
The distribution
- Not in excess of your qualified higher education expenses
from an IRA removes the 10% early withdrawal penalty, not the taxability of the distribution.
IRS Tax Topic - https://www.irs.gov/taxtopics/tc557
March 6, 2021
12:45 PM