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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.
‎June 1, 2019
8:45 PM