Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Mar 16, 2025 7:28:21 AM

i did a withdrawal on my 401 k to pay off credit card bills. is there a deduction or credit for me to get on my current return?

per title (this is from a cx)

0 1 725
1 Replies
Level 15
Mar 16, 2025 7:32:12 AM

No.   If you are younger than 59 1/2 there is a 10% early withdrawal penalty and ordinary income tax on the money you took out of the 401k.  You will need to enter your 1099R and the software will calculate the tax.

 

 

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.