In situations where you've taken a full withdrawal from a 401(k) plan and had the check made payable to you, the plan administrator withholds 20% and that is sent to the IRS as a tax payment.
In the tax form relating to these distributions, it says that if you make up the 20% from another source and rollover the full amount, you MAY receive that 20% back as a tax refund.
Unfortunately, it doesn't clarify what they mean by "may." I'm assuming it means that if you owe any taxes, that money would be deducted from the 20%. But if you break even or are due a refund, you would get the 20% back.
Is that correct? Or does "may" indicate some other evil IRS reasoning?
2007-06-21
09:01:21
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2 answers
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asked by
Anonymous
in
United States