topic 401k rollover to an IRA after I cashed the check in Retirement tax questions

401k rollover to an IRA after I cashed the check

Jayzoo — Sat, 01 Jun 2019 00:32:10 GMT

Last week I withdrew all of my 401k from an old employer, they withheld 20% for taxes. Now I want to put that money into an IRA. How much do I need to put into IRA to avoid penalties?

For example the 401k had 20k in it, they gave me check for 16k after 20% withholding. Do I need to now put 20k into IRA or 16K?

This is all within the 60 days limit period allowed to rollover.

A 10% additional tax will apply if you withdraw money fro...

IreneS — Sat, 01 Jun 2019 00:32:11 GMT

A 10% additional tax will apply if you withdraw money from your qualified retirement plan or IRA before you reach age 59-1/2 (and don't roll it over).

To avoid the additional tax, you will have to roll over the entire amount ($20,000) from your 401k into an IRA.

In the future you can avoid having taxes withheld by having a direct rollover where the old institution sends the funds directly to the new institution.

How do you apply to get 20% withheld back? Who, how, and...

arvila — Sat, 01 Jun 2019 00:32:11 GMT

How do you apply to get 20% withheld back? Who, how, and when does the 20% withheld get returned? (assuming you rollover entire amount)

The IRS has the money now. ask them (on your next tax ret...

fanfare — Sat, 01 Jun 2019 00:32:17 GMT

The IRS has the money now. ask them (on your next tax return).

In addition to the 10% penalty tax there is the regular tax on the 20% that was withdrawnt, if you don't roll that back in.

The withholding would be entered on your next federal inc...

re2boys — Sat, 01 Jun 2019 00:32:18 GMT

The withholding would be entered on your next federal income tax return and used to calculate your refund or balance due.

Re: A 10% additional tax will apply if you withdraw money fro...

ronmuhl — Sat, 06 Mar 2021 16:33:04 GMT

If the 401k was totally rolled over into an IRA (over 72 years old, and I received a 1099-R, how do I declare this in Turbotax?

Re: A 10% additional tax will apply if you withdraw money fro...

AnnetteB6 — Sat, 06 Mar 2021 17:46:49 GMT

Enter your Form 1099-R and be sure to answer all of the follow-up questions. If the distribution code on the Form 1099-R did not indicate a direct rollover, then you should be asked what you did with the money from the distribution. The questions will ask specifically about putting it into a Roth account and if you indicate 'no' to the Roth questions then it is assumed that it went to a Traditional IRA instead.

Use the following steps to get started:

On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
This opens a box where you can type in “1099-R” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
The search results will give you an option to “Jump to 1099-R”
Click on the blue “Jump to 1099-R” link

@ronmuhl