IF I HAVE TO WITHDRAW MONEY FROM MY 401K TO PAY MY TAXES DO I PAY TAXES ON THE WITHDRAWAL NEXT YEAR? I WILL GET A 1099R!

[glandorf]

Last year I had to pay $6000.00 taxes to pay the taxes I withdrew the money from my 401k.  This year I got a 1099R for that money ($6000) do I have to pay taxes again. 

[DanaB · Accepted solution]

It depends if you had enough tax withheld when you withdrew the money. You will have to include the 1099-R on your tax return and if it's from pre-taxed contributions the income will be taxable. Also, if you withdrew the money before reaching age 59½ then it may be subject to an additional 10% tax. But the tax that was withheld (shown in box 4 on the 1099-R) will also be included in your tax return.

Please follow these instructions on how to enter the 1099-R:

1. Login to your TurboTax Account 
2. Click "Take Me To My Return"
3. Click "Federal" from the left side of your screen
4. Scroll down to “Retirement Plans and Social Security” and click on “Show more”
5. Scroll down and click "Start"  next to "IRA, 401(k), Pension Plan Withdrawals (1099-R)" 
6. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
7. Click "I'll Type it Myself"
8. From here TurboTax will walk you through entering your 1099-R