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April 9, 2021
Question

If i turned 59 1/2 last year and withdrew from an IRA all last year, how do I calculate my taxes on the withdrawls?

  • April 9, 2021
  • 1 reply
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1 reply

RayW7
April 9, 2021

For a Traditional IRA there is no penalty for withdrawals after you reach 59 1/2, however the withdrawal generally will be taxed as ordinary income.

 

You should receive a 1099-R that will reflect the withdrawal and TurboTax will guide you through this. 

 

Distributions from an IRA are reported on Form 1099-R which the administrator of the fund will send in January.

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

 

-follow these link(s) for additional information-

Retirement Plans FAQs regarding IRAs Distributions ...

Managing Your Retirement Account and Taxes ... - TurboTax

What's the difference between a Traditional IRA an...