topic Does removing 401k plan increase refund for my tax return? in Retirement tax questions

Does removing 401k plan increase refund for my tax return?

moni479374 — Mon, 23 Feb 2026 12:23:30 GMT

Re: Does removing 401k plan increase refund for my tax return?

xmasbaby0 — Thu, 16 Feb 2023 18:44:53 GMT

What do you mean by "removing a 401k plan" ? If you take money out of your 401k you will pay tax on the money. If you are younger than 59 1/2 you will also pay a 10% early withdrawal fee for taking out the money.

Did you take money out in 2022? Do you have a 1099R ? If you have a 1099R you have to enter it on your tax return.

To enter your retirement income, Go to Federal> Wages and Income>Retirement Plans and Social Security>IRA 401 k) Pension Plan Withdrawals to enter your 1099R.

Re: Does removing 401k plan increase refund for my tax return?

DaveF1006 — Fri, 24 Feb 2023 15:58:10 GMT

To clarify, what exactly do you mean by removing a 401K plan. Did you cash it out completely, take a distribution, or not reporting it on a return?

If it is a distribution, then follow the advice given by xmasbaby0. If it is something else, please reply back in this post.

@moni479374