VolvoGirl
Level 15
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Retirement tax questions

You will probably get a 1099R next January for it and need to report it on your tax return.  It will be taxable and add to your other income.  

 

You didn't actually pay the tax.   You had taxes withheld like from your paycheck. You still have to enter the whole gross amount (before taxes were withheld) with your other income to figure out the total tax (and it may put you into a higher tax bracket) and then the withholding is subtracted from the total tax to figure your refund or tax due.  The Gross amount shows up on 1040 line 4a or 5a and the taxable amount on 4b/5b. The withholding will show up on 1040 line 25b.

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