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walsjj1
New Member

Early 401k withdrawl to pay taxes on another early 401k withdrawl

do i have to pay penalty on second withdrawl
1 Reply
MargaretL
Employee Tax Expert

Early 401k withdrawl to pay taxes on another early 401k withdrawl

Yes, you do have to pay taxes on 401K withdrawals, your first and your second one, unfortunately.  If you took the distributions before you reached age 59 and 1/2, you may also be subject to additional 10% penalty, unless certain exceptions apply. Be sure to enter the forms 1099-R into the program, TurboTax will ask you about the exceptions to penalties and determine if you qualify for any.  But both distributions are subject to your ordinary income tax.

  1. Federal Taxes
  2. Wages and Income
  3. Scroll down to Retirement Plans and Social Security
  4. Select IRA, 401(k), Pension Plans (1099-R)
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