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June 1, 2019
Question

I withdrew a large amount from my 401K plan to pay back federal taxes. How do I apply this to my 1040 to avoid added income taxation?

  • June 1, 2019
  • 1 reply
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1 reply

Employee
June 1, 2019

Unfortunately, this is taxable income and if under age 59 1/2 subject to a penalty. Paying income tax is not an exception to the penalty. You may qualify for another type. See possibilities in the link below.

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions