- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Do i pay additional taxes on a 401k withdrawal that i used to pay my house loan
Topics:
June 6, 2019
9:05 AM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
A withdrawal from a 401(k) account is a taxable event. The taxable amount of the withdrawal is entered on your tax return as ordinary income and taxed at your current tax rate. Paying a home mortgage is not an exception to the 10% early withdrawal penalty. If you were under the age for the early withdrawal penalty exception then the penalty will be assessed on your Form 1040 Line 59 as a tax liability. Any taxes withheld from the withdrawal will be entered on your tax return as a tax payment (just like from a W-2).
To enter a form 1099-R -
- Click on Federal Taxes (Personal using Home and Business)
- Click on Wages and Income (Personal Income using Home and Business)
- Click on I'll choose what I work on (if shown)
- Scroll down to Retirement Plans and Social Security
- On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button
Or enter 1099-r in the Search box located in the upper right of the program screen. Click on Jump to 1099-R
June 6, 2019
9:05 AM