Skip to main content
TurboTax
Community
TurboTax
Community
TurboTax
Community
K
katieleigh711
Employee
April 5, 2018
Question

401k

  • April 5, 2018
  • 1 reply
  • 0 views

taking an early withdrawal from account.  they will charge 20%, but what about the 10% by the government?  Is that mandatory?

1 reply

P
PaulaM
Employee
April 5, 2018

The 20% federal tax withheld is just to help you not incur an underpayment penalty. It functions like the withholding on W-2 income. The 10% under early withdrawal penalty will be calculated on your return (when you enter your 1099-R) and added to your tax liability for the year.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
TurboTax Sign In Widget
TurboTax flag icon

Unlock tailored help options in your account

Create an account
TurboTax Expert Assist
TurboTax Expert

Get answers to all your tax questions

Our experts are available on-demand, no appointment needed. Get help all year long with TurboTax Expert Assist.

Terms & ConditionsCookie settingsAccessibility statement
Intuit
TurboTax Credit Karma QuickBooks MailChimp

©1997-2022 Intuit, Inc. All rights reserved.
Intuit, QuickBooks, QB, TurboTax, ProConnect, and Mint are registered trademarks
of Intuit Inc. Terms and conditions, features, support, pricing, and service options
subject to change without notice.

Security Certification of the TurboTax Online application has been performed by
C-Level Security.

By accessing and using this page you agree to the Terms of Use.

Accessibility

TRUSTe nResult Certified e-File C-Level Security Certification