I have a 1099-R Took $'s out of a fund losing $'s, to buy new windows for my house. Box 7 code reads 1. Is there anything I can do to mitigate the rise in tax due?

Grant1705 · ‎June 4, 2019

It seems to me that taking out this $20K is costing me an additional $7K in tax for 2016. Does that sound right? It sure does not to me. Also - I just turned 60 in Dec 2016 if that might help with an answer.

SteamTrain · ‎June 4, 2019

Sounds right for a 25% tax bracket plus 10% penalty.

Box 7 would be a "1" for it if you took it out any month before June

.....and if removed during June, it would depend on exactly what date.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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SteamTrain · ‎June 4, 2019

Sounds right for a 25% tax bracket plus 10% penalty.

Box 7 would be a "1" for it if you took it out any month before June

.....and if removed during June, it would depend on exactly what date.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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I have a 1099-R Took $'s out of a fund losing $'s, to buy new windows for my house. Box 7 code reads 1. Is there anything I can do to mitigate the rise in tax due?