For 2023 Federal Tax Return on Turbo - where to enter a withdrawal amount I made from Fidelity investment?

[massachusetts1]

This may be same as how to enter a CD earned interest but not sure.

I have 1099-R with amount I withdrew from Fidelity stocks. (It is not interest earned, or new or gained money. Pretty much what I deposited to stock fund.  Also, the Fed Income Tax was withheld when sending to me.)   '

But where to enter the amount in the Tax Return?   Under section for "Interest Income from bank or brokerage" ?

Or is there another section for this?

Also, I assume I enter the full amount in Box 1 of 1099 even that Tax Withheld is in Box 4. Correct?

Thanks.

[massachusetts1]

I realize this is an IRA brokerage account.   I have not started taking IRA distributions yet.  I believe I  have until next year when I'm 72 yrs.  to start these mandated minimal distributions.    Did I just begin this by accident?

What does this mean or what I should know now? 

(I also think I found the section of the Tax Return where to enter 1099-R info)

Thanks again.

[SteamTrain · Accepted solution]

@massachusetts1 

Sounds like you found the place to enter it in the 1099-R section.

Taking $$ before the RMD age is only a mistake if you are under age 59.5  (due to an extra 10% penalty).  Any time after that....up until your RMD age...it's up to you as to whether you want or need any $$.

Also, the RMD age for you is likely the year you reach age 73...it was bumped up again.

__________________________

From the IRS instructions printed a couple years ago:

  "Required Minimum Distributions (RMDs) are minimum amounts that IRA and retirement plan account owners generally must withdraw annually starting with the year they reach age 72 (73 if you reach age 72 after Dec. 31, 2022)."

[massachusetts1]

StreamTrain-  Thank you so much.

So no penalty for withdrawing from IRA brokerage.   Was hoping that didn't lock me into some mandate to continue taking distributions until the official start at 73 yrs.  (Like, once you start you need to continue same.)

Okay, so this is good news.

Thank you very much for explaining and those details.

As for the entry, I did find where to enter for 1099-"R".

(Working on my extension Tax Return for 2023!  I may be back here.)

Many thanks again!

[VolvoGirl]

No penalty unless you are under 591/2.  But there are taxes.  You can take a withdrawal anytime for anything.   It’s just when you turn 73 you have to start taking the RMD Required Minimum Distribution each year.  You can take more.  The IRA should send you a letter each year telling you how much you have to take out for the RMD.  

The first year RMD you can wait to take it until April 1 of the next year.  But that means you would have to take 2 RMDs that year.