topic Re: Withdrawal in Retirement tax questions

Withdrawal

Yesa12 — Mon, 27 Jan 2025 18:05:49 GMT

If i withdraw 401k from my 2024 retirement but didn’t receive until 2025. Do i file it on 2024 or 2025?

Re: Withdrawal

MinhT1 — Mon, 27 Jan 2025 18:09:31 GMT

You have to file your 1099-R in the tax year it was issued for.

Re: Withdrawal

VolvoGirl — Mon, 27 Jan 2025 18:09:37 GMT

Did you get the 1099R for it yet? If you get a 1099R for 2024 you list it on your 2024 return. You might not get the 1099R until mid to late February.

Re: Withdrawal

xmasbaby0 — Mon, 27 Jan 2025 18:11:04 GMT

Go to the plan's web site to see if they show a 1099R for 2024 for the money you took out. If they sent the money in 2024 you will enter it on your 2024 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: Withdrawal

Yesa12 — Mon, 27 Jan 2025 18:13:33 GMT

I had got let go from my job & my 401k was under 1,000 so they gave me options to roll over or withdraw. Only option was withdraw. Which I had done that in January 2025. So I file it in 2025 taxes?

Re: Withdrawal

xmasbaby0 — Mon, 27 Jan 2025 18:15:16 GMT

Yes, that will go on your 2025 return when you prepare it next year---in 2026.

Re: Withdrawal

Yesa12 — Mon, 27 Jan 2025 18:18:38 GMT

Thank you

Re: Withdrawal

Opus 17 — Mon, 27 Jan 2025 18:45:26 GMT

@Yesa12 wrote:

I had got let go from my job & my 401k was under 1,000 so they gave me options to roll over or withdraw. Only option was withdraw. Which I had done that in January 2025. So I file it in 2025 taxes?

Sometimes, asking for a withdrawal late in the year will not actually be complete until the next year, so if the broker processed the withdrawal in 2025, that's when you will report it.

Important. You have the option of keeping this money tax free by opening a private IRA at a bank or broker of your choosing, and depositing the same amount of money as a "rollover". You have 60 days from the date the check or electronic deposit was issued. If you roll the money over to an IRA, the event is non-taxable and the money will continue to grow until you retire. You can also add your own money to an IRA, up to $7000 per year, and get a tax deduction, depending on your income and other factors.

You can also open a Roth IRA and put the money in as a rollover within 60 days. With a Roth IRA, you don't get a tax deduction now, but all your withdrawals when you retire are completely tax free. If you are young and in a low tax bracket, you should really consider converting this money to a Roth IRA. You can also add your own money to a Roth IRA. If you convert the money to a Roth IRA, you will pay regular income tax but you do not pay a penalty.

If you keep the money, you will pay regular income tax plus a 10% penalty on it.