My 401k sent me a disbursement because I no longer worked for the company, do I have to pay additional tax?

danicaschrader — Thu, 06 Jun 2019 06:09:07 GMT

It depends on what you did with the money. If you rolled...

ThomasM — Thu, 06 Jun 2019 06:09:09 GMT

It depends on what you did with the money.

If you rolled those funds into another retirement account within 60 days of the distribution, then the money is not taxable and there's no penalty.

If you did not do a rollover with those funds, then they are taxable. In addition, if you're under age 59 1/2, then you'll be subject to a 10% penalty for an "early distribution."

You should have received a form 1099-R showing that distribution. Take a look at the code in box 7. If it's a code 1, then that means early distribution and will trigger the penalty. TurboTax will make the necessary calculations based on your entry of the 1099-R information.

topic My 401k sent me a disbursement because I no longer worked for the company, do I have to pay additional tax? in Retirement tax questions

My 401k sent me a disbursement because I no longer worked for the company, do I have to pay additional tax?

It depends on what you did with the money. If you rolled...