My wife took out a $40,000 withdrawal from her IRA so that we would not go into foreclosure. she had $4,000 withheld to cover the tax. Do we then get taxed another 10% on top of that.

freddythedog13 — Thu, 06 Jun 2019 09:41:08 GMT

Yes, you will be subject to additional 10% penalty tax if...

MargaretL — Thu, 06 Jun 2019 09:41:10 GMT

Yes, you will be subject to additional 10% penalty tax if the distribution is an early distribution and no exceptions apply to your situation. Unfortunately, avoiding potential foreclosure does not qualify for the exception to the penalty.

As to the ordinary tax on your IRA distribution, please be sure to answer follow up questions about your IRA distribution. TurboTax will ask if you have any nondeductible contributions in your IRA (called basis). Please be sure to enter your basis amount if you have any - only the difference between your distribution and your basis will be taxed.

To enter form 1099-R, please follow the steps below:

Federal Taxes
Select Wages and Income
Scroll down to Retirement Plans and Social Security
Select IRA, 401(k), Pension Plans (1099-R)

topic My wife took out a $40,000 withdrawal from her IRA so that we would not go into foreclosure. she had $4,000 withheld to cover the tax. Do we then get taxed another 10% on top of that. in Retirement tax questions

My wife took out a $40,000 withdrawal from her IRA so that we would not go into foreclosure. she had $4,000 withheld to cover the tax. Do we then get taxed another 10% on top of that.

Yes, you will be subject to additional 10% penalty tax if...