Retirement tax questions


@G4Captain wrote:

I'm doing my taxes for last year, and I'm stuck on what to do about the distribution I took from my 401K last year.

 

I have the option to pay all the taxes now on the amount that I withdrew, or spread it out over three years. If I spread it out over three years, how is that money counted for taxes? Is it considered taxable income?


Yes.  1/3 would be taxable income in each year, 2020, 2021 and 2022) or if you choose the option to pay all the tax in 2020, it will all be taxable in 2020.

**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.**