turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Does removing 401k plan increase refund for my tax return?

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies

Does removing 401k plan increase refund for my tax return?

What do you mean by "removing a 401k plan"  ?  If you take money out of your 401k you will pay tax on the money.  If you are younger than 59 1/2 you will also pay a 10% early withdrawal fee for taking out the money.   

 

Did you take money out in 2022?   Do you have a 1099R ?  If you have a 1099R you have to enter it on your tax return.

 

To enter your retirement income, Go to  Federal> Wages and Income>Retirement Plans and Social Security>IRA  401 k) Pension Plan Withdrawals to enter your 1099R.

**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.**
DaveF1006
Employee Tax Expert

Does removing 401k plan increase refund for my tax return?

To clarify, what exactly do you mean by removing a 401K plan. Did you cash it out completely, take a distribution, or  not reporting it on a return?

 

If it is a distribution, then follow the advice given by xmasbaby0. If it is something else, please reply back in this post.

 

@moni479374 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question