You'll need to sign in or create an account to connect with an expert.
If you did not roll over the retirement account to another tax deferred retirement account within 60 days then you will owe a 10% early distribution penalty. The penalty is assessed on your federal tax return, Form 1040.
And this was not a "refund" of your retirement contributions. It was a distribution due to the balance in the plan being below the threshold where the plan would be required to maintain the account. It is taxable and subject to an early-distribution penalty if it was not rolled over as described by DoninGA. This money consists of earnings on which you have not previously paid taxes, so it is taxable when distributed.
Your employer was required to have provided to you instructions regarding the tax consequences of this distribution prior to making the distribution unless you waived that requirement. those instructions would have included your option to request a direct rollover to an IRA or other qualified retirement account to be able to continue to defer this income.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
cmosleyhull27
New Member
sheehyboston
New Member
fdferguson48
New Member
maverick410-
New Member
Nucci
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.