topic My 1099-R shows I withdrew 10.1k, when I only withdrew 10k, that $100 went to state taxes. now my federal taxes is penalizing me for that $100, is that normal? in Retirement tax questions

My 1099-R shows I withdrew 10.1k, when I only withdrew 10k, that $100 went to state taxes. now my federal taxes is penalizing me for that $100, is that normal?

cas0000 — Tue, 03 Feb 2026 09:20:02 GMT

Re: My 1099-R shows I withdrew 10.1k, when I only withdrew 10k, that $100 went to state taxes. now my federal taxes is penalizing me for that $100, is that normal?

rjs — Fri, 21 Feb 2025 04:52:58 GMT

You withdrew $10,100. Then you used $!00 of the money that you withdrew to make a state tax payment. It's the same as if you took the whole $10,100, then sent a check for $100 to the state. The amount that came out of your retirement account is $10,100.

Based on the question you posted a few days ago, it appears that you took an early distribution and used $10,000 towards the purchase of a first home. That $10,000 qualifies for an exception to the early distribution penalty. But $10,000 is the maximum for the first-home exception. Since you actually withdrew $10,100 you do have to pay the penalty on the additional $100.

Re: My 1099-R shows I withdrew 10.1k, when I only withdrew 10k, that $100 went to state taxes. now my federal taxes is penalizing me for that $100, is that normal?

cas0000 — Fri, 21 Feb 2025 05:38:13 GMT

Thanks, so now my question is, for those withdrawing 10k from IRA to purchase a house, do they need to pay penalty tax to California?

The reason I’m asking is because CA is now asking for passion $3 for that $100 tax I’ve already paid

Re: My 1099-R shows I withdrew 10.1k, when I only withdrew 10k, that $100 went to state taxes. now my federal taxes is penalizing me for that $100, is that normal?

dmertz — Fri, 21 Feb 2025 12:15:58 GMT

The $100 that went to tax withholding is an amount not used for the purchase of the first home, so it is subject to an early-distribution penalty determined on your tax return. The $100 withheld for taxes is separately credited on your tax return to be applied against your overall tax liability.