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New Member
posted Jun 6, 2019 5:31:05 AM

I withdrew my 401k early but the amount shown on my 1099-R isn’t the amount I actually received since I paid the 10% early withdraw fee. Does this change anything?

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2 Replies
Level 15
Jun 6, 2019 5:31:06 AM

The 10% early withdrawal penalty and any tax withholding taken out will all show up in box 4 as Federal Income tax withheld.

You didn't actually pay the tax or 10% penalty (you pay a 10% early withdrawal penalty if you are under 59 ½).  You had taxes withheld like from your paycheck. You still have to enter the whole amount (before taxes were withheld) with your other income to figure out the total tax (and it may put you into a higher tax bracket)  and then the withholding is subtracted from the total tax to figure your refund or tax due.  The withholding will show up on 1040 line 64 (1040A line 40).   The 10% penalty is on 1040 line 59.

It has to break out and list the 10% early withdrawal penalty separately on your return.  It's on 1040 line 59. Then you will get credit for the withholding on line 64.

Ps…..you can lose up to 50% of your withdrawal to federal and state taxes and penalties.

Level 15
Jun 6, 2019 5:31:08 AM

Also note that the amount that went to taxes is still an amount distributed from the IRA that is taxable and subject to penalty, no differently than if you had the entire gross amount paid to you and you then made the same amount of estimated tax payment.