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D
dgloria3
February 7, 2020
Question

IF WE PAY OUR TAXES WHEN WE CASH OUT OF OUR 1099 R WHY DO THEY STILL TAKE OUT A HUGE CHUNK ON TOP OF OUR TAXES WE PAY IN?

  • February 7, 2020
  • 1 reply
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1 reply

X
xmasbaby0
Employee
February 7, 2020

When you take money out of your retirement account, tax is withheld just like when you have tax withheld from a paycheck.    When the extra income is combined with your other income, the calculations are done for ALL of your yearly income, which may cause you to owe more.  And....if you took out money before you were 59 1/2 you have to pay a 10% early withdrawal penalty.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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