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