Maybe--but we cannot tell from the information you have provided. If that money was not taxed previously, then when you took it out, it became taxable income to you. It will combine with your other income, and then the software will calculate just what your total tax liability is for your 2018 return. The retirement fund you cashed in is subject to federal and state tax. When you cash out a retirement plan, it is normal for the administrator of the plan to withhold 20% for taxes--just like your employer withholds money from your paycheck for taxes.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
