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When you take all of your money out of a tax-advantaged retirement plan, you'll typically have to pay taxes on your withdrawal, just as if it was ordinary income. If you have a large retirement plan balance, taking a lump-sum could trigger significant tax consequences. However, IRS Form 4972 allows you to claim preferential tax treatment if you meet a series of special requirements.
Mary thanks for your reply. I am aware of that. The problem is we had no withdrawals or boxes checked on any forms. Just have W2 and 1099 int and 1099 div. The program won’t allow me to enter a zero either. Very strange.
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