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June 1, 2019
Question

My wife quit her job in March of last year and we took an early withdrawal from her 401k to pay off debt. Is there anything special I should know about this?

  • June 1, 2019
  • 1 reply
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We paid the 10% penalty, federal and state tax all up front.

1 reply

Employee
June 1, 2019
The tax you paid was only an estimate.  You need to report the withdrawal on your tax return from a 1099-R and you will get credit for the withholding.  Your overall tax will be calculated and you might owe more or get a refund.
zrcoleAuthor
June 1, 2019
Thank you,  I am assuming I will receive a form from either the state, fed, 401k holding company, regarding the withdrawal and the tax payments, and penalty payments?