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New Member
posted Feb 1, 2020 12:20:44 PM

If I did a withdrawal from a traditional IRA that was already taxed the 10% penalty, do I pay addl tax when I file? I received 2 1099-R forms and each has different info.

0 4 499
4 Replies
Level 5
Feb 1, 2020 12:38:28 PM

So check to see if one of the 1099's has the "corrected" box checked - it should be at the top of the form.

 

The 10% penalty should have been withheld and included on the 1099R as withholding.  You will report this on your tax return as a withholding (giving you credit for already withholding that penalty.)

Expert Alumni
Feb 1, 2020 12:47:41 PM

When you say "taxed the 10%" what you mean is that the 10% was withheld from your distribution and reported to the IRS. You settle up with the IRS when you file your return which is inputting all your income (1099-R) and then also inputting all your withholding. 

 

As long as you report all of your withholding, you will not pay additional tax when you file. The box that is very important to get correct is "Box 4 - Federal Income Tax Withheld."

 

When you say you received two different ones are you saying you did not have two different distributions? Does one of the 1099's say "Corrected" or have a check box by Corrected? If so, that is the one you would use.

 

 

New Member
Feb 1, 2020 2:30:13 PM

Thank you for the reply! I only received 1 distribution. There are 2 completely different forms (not a correction) - one from the insurance co - and the other from the investment co - each form has different company names and different payers state numbers. The form from the investment co says it's a 2019 Retirement Account Tax Info Statement, but also lists 2019 Form 1099-R info and the one from the insurance co is the actual irs.gov 1099-R form. 

Expert Alumni
Feb 2, 2020 7:31:30 PM

For clarification, please call the Investment company for an explanation of the "info" statement. (Also, you want to determine why the amounts are different). 

 

I recommend entering only the Form 1099-R from the insurance company.  It seems that the 10% early withdrawal penalty has already been withheld in box 4.