dmertz
Level 15

Retirement tax questions

The taxable amount is usually the entire amount, $10,000 in this case, except when some portion of the distribution is from after-tax money in the 401(k).  Most people don't have any after-tax money in their 401(k).

 

(I'm assuming that this is not a lump-sum distribution involving a distribution of Net Unrealized Appreciation of employer securities, otherwise you probably would have mentioned that.)