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I paid 30% tax on my 401k withdrawal. Should I be also getting taxed on tax time

 
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2 Replies
AnnetteB6
Expert Alumni

I paid 30% tax on my 401k withdrawal. Should I be also getting taxed on tax time

Yes.  The distribution from your 401k will be included as income on your return and taxed accordingly.  The 30% tax was only a withholding of Federal income tax, just like tax withholding from your paychecks would be.  It is only when the income is included on your tax return that the income tax and withholding amounts are reconciled to determine if you get a refund of some of the withholding or owe additional taxes.

 

Having taxes withheld from a 401k distribution is not a stand-alone transaction.  It has to be included on your tax return as well.

 

 

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I paid 30% tax on my 401k withdrawal. Should I be also getting taxed on tax time

The withheld amount is an estimate only.  You list the 401(k) on your return including the withheld amount.  Your total state and federal taxes are calculated from all your income and deductions, and you get credit for all your payments and withholdings.  If you had too much withheld, you get a refund, and if you did not have enough withheld, you may owe more. 

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