TomD8
Level 15

Retirement tax questions

The amount in Box 1 of the 1099-R is the gross distribution before taxes.  By IRS rule, the distribution is subject to mandatory 20% tax withholding.  A code 1 in Box 7 indicates that this was an early distribution (before age 59 1/2), which is subject to an additional 10% penalty tax.

Therefore the Box 1 amount will be greater than the amount actually received, but it shouldn't be "double."  As @VolvoGirl said, if the figures don't seem right, contact the plan administrator.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

View solution in original post