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Level 2
February 3, 2024
Question

1099-R and penalty

  • February 3, 2024
  • 2 replies
  • 27 views

Why am I being assessed a 10% penalty for an early 403B withdrawal when I had that withheld from the amount when I took the withdrawal? I entered my 1099-R and entered the amount of tax withheld, yet I'm still shown I owe the 10% penalty. 

    2 replies

    Level 15
    February 3, 2024

    The tax that was withheld was an estimate of the tax you would owe, just like the federal tax employers withhold and put on your W-2.  When you enter the 1099R and all of your other income, it all adds together and your tax refund or tax due is calculated.

    **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.**
    Level 2
    February 3, 2024

    Ah! Thank you so much!