topic It said I owe IRS for pulling money out of retirement early. When do I pay that ? Does it come out of my refund? in Retirement tax questions

It said I owe IRS for pulling money out of retirement early. When do I pay that ? Does it come out of my refund?

brandyd — Sun, 02 Feb 2020 02:05:58 GMT

Re: It said I owe IRS for pulling money out of retirement early. When do I pay that ? Does it come out of my refund?

xmasbaby0 — Sun, 02 Feb 2020 02:23:08 GMT

You will get a 1099R sometime soon if you have not already received it. You enter the 1099R and the software will do the calculations. If it was an early withdrawal, you are subject to a 10% penalty plus ordinary income tax. They probably already withheld some tax which will be indicated on the 1099R. Like the tax withheld from your paychecks, the software has to calculate if you paid too much or too little tax when the retirement money is added to your other income.

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: It said I owe IRS for pulling money out of retirement early. When do I pay that ? Does it come out of my refund?

VolvoGirl — Sun, 02 Feb 2020 02:29:30 GMT

If it say you have a penalty you must have already entered the 1099R.

The 10% Early Withdrawal Penalty is on Schedule 2 line 6 which goes to 1040 line 15