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Level 1

Question

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

Forum|Forum|3 years ago
February 16, 2023
2 replies
8 views

No text available

TurboTax Deluxe Online

Level 15

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.**

Level 15

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.

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