If I receive a 1099r for early withdrawal from a 401k, does the tax apply to the current calendar year?

Forum|Forum|7 years ago
June 1, 2019
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If the total of the 401k withdrawal is less than the 1040 standard deduction, and there is no other taxable income for the year, would I be entitled to the full refund of the 1099r amount?

Best answer by DoninGA

If you have an early withdrawal penalty being under the age of 59 1/2 at the time of withdrawal, then the penalty is 10% of the amount withdrawn and is entered on the tax return as a tax liability. If the total tax payments are greater than the total tax liabilities you will get a refund for the overpayment.

To enter 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

Standard deductions for 2016

Single - $6,300 add $1,550 if age 65 or older
Married Filing Separately - $6,300 add $1,250 if age 65 or older
Married Filing Jointly - $12,600 add $1,250 for each spouse age 65 or older
Head of Household - $9,300 add $1,550 if age 65 or older

Personal exemption for 2016 - $4,050

DoninGAAnswer

Employee

If you have an early withdrawal penalty being under the age of 59 1/2 at the time of withdrawal, then the penalty is 10% of the amount withdrawn and is entered on the tax return as a tax liability. If the total tax payments are greater than the total tax liabilities you will get a refund for the overpayment.

To enter 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

Standard deductions for 2016