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ritabarnes
New Member

I withdrew $44,444.00 from my IRA. At that time Edward Jones paid $4,444.00 for my federal income tax. I didn't see where this was taken into account.

 
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macuser_22
Level 15

I withdrew $44,444.00 from my IRA. At that time Edward Jones paid $4,444.00 for my federal income tax. I didn't see where this was taken into account.

The box 4 withholding will be added to all other withholding, such as W-2 withholding, and be shown on line 64 on the 1040 form to offset your overall tax liability. If you are not 59 1/2 or older the there will be an additional 10% early withdrawal penalty.

The amount of withholding was 10% of the distribution.  If you are under 59 1/2 then that would only cover the penalty and not the tax itself which if from a Traditional IRA is taxed as ordinary income.  If you are in the 20% tax bracket then you would owe about $8,800 more tax on the distribution.


Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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2 Replies
Lisa995
Level 12

I withdrew $44,444.00 from my IRA. At that time Edward Jones paid $4,444.00 for my federal income tax. I didn't see where this was taken into account.

If you entered into the 1099R form when you filled it in, it gets included with other federal withholding, like from a paycheck.  

If this was an early withdrawal, there is an additional 10% penalty that you pay in addition to the income taxes on that additional income.  Its very common to see that you have a lower refund or may owe taxes when taking an early withdrawal.
♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪
macuser_22
Level 15

I withdrew $44,444.00 from my IRA. At that time Edward Jones paid $4,444.00 for my federal income tax. I didn't see where this was taken into account.

The box 4 withholding will be added to all other withholding, such as W-2 withholding, and be shown on line 64 on the 1040 form to offset your overall tax liability. If you are not 59 1/2 or older the there will be an additional 10% early withdrawal penalty.

The amount of withholding was 10% of the distribution.  If you are under 59 1/2 then that would only cover the penalty and not the tax itself which if from a Traditional IRA is taxed as ordinary income.  If you are in the 20% tax bracket then you would owe about $8,800 more tax on the distribution.


Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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