401K

[albers]

I am over 59.5 and want to withdraw money from my 401K .  My plan will deduct the Federal & State taxes prior to distribution.

For tax purposes, do I add the total amount including taxes to my income?  

[VolvoGirl]

Yes.  You enter the full amount as income then you will get credit for the tax withholding.  Like withholding from your paychecks.   It is just an estimated amount.

You should have a 1099R for it.

Enter a 1099R under

Federal Taxes Tab or Personal (Home & Business)

Wages & Income at the top

Then scroll way down to Retirement Plans and Social Security,

Then IRA, 401(k), Pension Plans (1099R) - click Start or Revisit

There are 4 boxes.  Be sure to pick the right box for the kind of 1099R you got.

If you are filing a Joint return be sure to pick which person it is for.

[SteamTrain]

Yes...that total before taxes will be entered when you get that 1099-R.

ANNND..the taxes withheld may NOT be enough.  It's just like the standard withholding on a W-2.  They may withhold 10% or 20% (for Fed), but if you are in a higher tax bracket based on your total income for the full year, you may owe some more.....or get some back as a refund if your income for the year, including that distribution, is low.

[Opus 17]

Any withholding is only an estimate.  You must list the withdrawal as income on your tax return, and the actual tax you owe is calculated based on your total income, deductions and credits, and you get credit for the withholding.  If you withheld too much, you will get a refund, and if you did not withhold enough, you will owe an additional payment when you file your return.