I withdrew funds from my IRA

Forum|Forum|1 year ago
March 25, 2025
2 replies
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in the beginning of 2024, I withdrew funds from my IRA account in preparation for expenses and possible downpayment on the loan for the house. There were 10% tax taken out how will that impact my taxes this year.

MinhT1

Level 15

This tax payment is tax withheld, which is just an estimated advance payment of your taxes. The final tax amount can only be determined when you fill out your tax return. The taxes withheld serve as a credit against your tax liability. If too much tax was withheld, you'll receive a refund; otherwise, there'll be a tax due.

You have to enter that form 1099-R on your tax return.

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xmasbaby0

Level 15

You will need to enter a 1099R for the money you took from the retirement account.

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.

I PAID TAX ON THE RETIREMENT MONEY ALREADY

You had tax withheld from the distributions from the retirement account, just like when an employer withheld tax from your paychecks. When you enter it all into the software, the calculations are done to reconcile the amount of income you received and the amount of tax that was withheld. You might owe more or you might get a refund.

**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.**