@Tequilajane wrote:
What if you do qualify and already paid taxes when you set up the withdrawal? It’s says I qualify and then tells me to pay 1/3 of the taxes due anyway. I’m going crazy here.
You did not pay the tax - you had tax withheld to pay it on your tax return. The 1099-R box 4 amount gets added to other withholding on line 25 on the 1040 form to offset 2020 taxes. 1/3 of the box 1 amount will be taxable in 2020 on line 5b on the 1040 form. The box 4 withholding might not be enough to offset the tax depending on your other income and tax bracket.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
