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April 29, 2023
Question

If I took cash from a 401a and 457, does that mean I sold stocks?

  • April 29, 2023
  • 2 replies
  • 0 views
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2 replies

DoninGA
Employee
April 29, 2023

No.  You should have received a Form 1099-R for the withdrawals.

 

To enter, edit or delete a form 1099-R -

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Retirement Plans and Social Security
On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

 

Or enter 1099-r in the Search box located in the upper right of the program screen. Click on Jump to 1099-R

VolvoGirl
Employee
April 29, 2023

No.  You took a distribution.  You will get a 1099R to enter into your tax return.  It is taxed as ordinary income, not investment income.  If you are under 59  1/2 there might be a 10% early withdrawal penalty.