Opus 17
Level 15
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Retirement tax questions

You need to look at your 1099-R.  One possibility is that you withdrew $4000, had $400 of withholding, and received $3600 net.  That should have $4000 in box 1 and $400 in box 4.

 

Another possibility is that you withdraw $4400, had $400 withheld, and received a net of $4000.  Then your 1099-R should have $4400 in box 1 and $400 in box 4.

 

If your 1099-R is wrong you have to contact the broker for a corrected 1099.  If it was case #1 where you withdrew $4000 and netted $3600, then it is, in fact, a $4000 withdrawal.  The withholdings from box 4 go to your credit, but may not represent the total amount of tax owed, which depends on all your other income, deductions and credits. 

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