No, you are not being penalized. When you enter the 1099-R, it is being included as income and you pay taxes on it, just like everyone else does. If you did not have taxes withheld from the amounts you received, you may end up owing money when you file your tax return. This appears to be what happened.
No, you are not being penalized. When you enter the 1099-R, it is being included as income and you pay taxes on it, just like everyone else does. If you did not have taxes withheld from the amounts you received, you may end up owing money when you file your tax return. This appears to be what happened.
Thank you...yes, unfortunately it appears that I will have to withhold money just to offset it at the end of the year. I know I am one of many that feels that our (retired military) retirement should not be counted as income by the Fed. Didn't we give enough already?