At age 57 i was separated from my job. withdrew my 401k. 20% taxes were imposed. How does the 55 rule work for my situation please. Do I get 10% taxes back or just no 10%

[ptsab3433]

penalty in addition to 20% imposed at withdrawl? Voya financial retirement plan

[DoninGA]

There will Not be a 10% early withdrawal penalty imposed since you are age 55 or older and separated from your employer.

[VolvoGirl]

You didn’t actually pay the tax or the 10% penalty (you pay a 10% early withdrawal penalty if you are under 59 ½). You had taxes withheld like from you paycheck. You still have to enter the whole gross amount (before taxes were withheld) with your other income to figure out the total tax (and it may put you into a higher tax bracket) and then the withholding is subtracted from the total tax to figure your refund or tax due. The Gross amount shows up on 1040 line 4a or 5a and the taxable amount on 4b/5b. The withholding will show up on 1040 line 25b.