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New Member

I took out my 401k for 26000 and i paid 6000 in taxes. Will I have to pay and other fees

 
8 Replies
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Level 15

I took out my 401k for 26000 and i paid 6000 in taxes. Will I have to pay and other fees

The taxes withheld from your retirement account withdrawal are an estimate.  When that money is added to your other income, you may owe additional tax.  If the distribution was an early withdrawal you will also have a 10% penalty.  You will receive a 1099R for this in January.

 Go to  Federal> Wages and Income>Retirement Plans and Social Security>IRA  401 k) Pension Plan Withdrawals to enter your 1099R

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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Level 15

I took out my 401k for 26000 and i paid 6000 in taxes. Will I have to pay and other fees

Remember State taxes as well.
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New Member

I took out my 401k for 26000 and i paid 6000 in taxes. Will I have to pay and other fees

Is the 10% penalty for the whole amount
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Level 15

I took out my 401k for 26000 and i paid 6000 in taxes. Will I have to pay and other fees

Yes on the full gross amount.  You didn't actually pay the tax or 10% penalty (you pay a 10% early withdrawal penalty if you are under 59 ½).  You had taxes withheld like from your paycheck. You still have to enter the whole gross original amount (before taxes were withheld) with your other income to figure out the total tax (and it may put you into a higher tax bracket) and then the withholding is subtracted from the total tax to figure your refund or tax due.  The withholding will show up on 1040 line 64 or 1040A line 40.  The 10% penalty is on 1040 line 59.

It has to break out and show the 10% penalty separately on your return and then you get credit for all the withholding taken out on Line 64.
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Level 15

I took out my 401k for 26000 and i paid 6000 in taxes. Will I have to pay and other fees

The 10% penalty would be for the whole amount you took out, if you have the penalty.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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New Member

I took out my 401k for 26000 and i paid 6000 in taxes. Will I have to pay and other fees

Thankyou for the help. I guess I will be paying taxes this year
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Level 15

I took out my 401k for 26000 and i paid 6000 in taxes. Will I have to pay and other fees

Yes you can lose like 50% of it to federal and state taxes and penalties.
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New Member

I took out my 401k for 26000 and i paid 6000 in taxes. Will I have to pay and other fees

Oh wow I didn’t know it would be that much