Tax on early retirement

czfaulkner — Thu, 06 Jun 2019 05:52:49 GMT

Why is it that I am being taxed twice by taking a lump sum out of my retirement?

You are not being taxed twice. The withdrawal from your...

DoninGA — Thu, 06 Jun 2019 05:52:50 GMT

You are not being taxed twice. The withdrawal from your retirement account reported on a Form 1099-R is entered on your tax return as ordinary income and taxed at your current tax rate. Any taxes withheld from the distribution is entered on the tax return as a tax payment (just like from a W-2). If you were under the age of 59 1/2 at the time of the withdrawal there will be a 10% early withdrawal penalty assessed on the Form 1040 and entered on Line 59 as a tax liability. If your total tax payments are greater than your total tax liabilities you will receive a tax refund for the overpayment. If your total tax payments are less than your total tax liabilities then you will have taxes owed.

topic Tax on early retirement in Retirement tax questions

Tax on early retirement

You are not being taxed twice. The withdrawal from your...