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Retirement tax questions
The taxable amount from a retirement fund distribution is not a capital gain. It is entered on your tax return as ordinary income and taxed at your current tax rate. If you were under age of 59 1/2 or under age 55 during the year you separated from the employer then there will be a 10% early distribution penalty assessed on the gross distribution and entered on the return as a tax liability.
March 16, 2022
3:40 PM