topic I took out 9,000 from my 401K. I am being taxed 19%. I am single and want to know why I am not being taxed the regular 10%. in Retirement tax questions

I took out 9,000 from my 401K. I am being taxed 19%. I am single and want to know why I am not being taxed the regular 10%.

dmstale — Wed, 15 Apr 2020 17:00:15 GMT

Re: I took out 9,000 from my 401K. I am being taxed 19%. I am single and want to know why I am no...

ColeenD3 — Wed, 15 Apr 2020 17:19:22 GMT

If you took a premature distribution, you have an additional 10% penalty. The funds are meant for retirement.

Re: I took out 9,000 from my 401K. I am being taxed 19%. I am single and want to know why I am no...

dmstale — Wed, 15 Apr 2020 17:36:41 GMT

70 yrs old and retired... single since widowed before 2017

Re: I took out 9,000 from my 401K. I am being taxed 19%. I am single and want to know why I am no...

dmstale — Wed, 15 Apr 2020 17:37:34 GMT

70 yrs old and retired... single since widowed before 2017

Re: I took out 9,000 from my 401K. I am being taxed 19%. I am single and want to know why I am no...

ColeenD3 — Wed, 15 Apr 2020 17:38:46 GMT

Is that your only income? Look at your 1040 to see the numbers.

To view your 1040 form, follow these steps:

Sign in at TurboTax.com and select the blue Take Me to My Return button, if you haven't already done so.
On the welcome back screen, select Tax Tools from the menu on the left side of your screen (click or tap the 3 lines in the upper-left corner if you don't see this menu).
Select Tools, and then select View Tax Summary
Preview my 1040 under Tax Home (sidebar)
Click Back near the top of your screen to exit the preview screen.

Re: I took out 9,000 from my 401K. I am being taxed 19%. I am single and want to know why I am no...

BillM223 — Wed, 15 Apr 2020 18:01:32 GMT

It happens a lot that a person on Social Security only pays no tax on his/her SS benefits.

However, there is a formula which determines how much of your SS benefits are taxable (up to 85%), based on other income you receive.

Thus it can happen that you take a 401(k) distribution and that this is sufficient other income to cause some of your previously untaxed SS benefits to become taxable.

Look at line 5b on your 1040. This is the amount of SS benefits that are taxable in 2019 (line 5a is the total amount of SS benefits that you received). Compare this to 2018.

If you suddenly have a value in line 5b, then this is the reason you appear to be paying 19% on your 1099-R distribution - it's because you are now paying tax on SS benefits as well.