1099 does not have the taxes that was withheld?

Question

Hello,

at the beginning of 2006 when I took my 401k out after quitting my job the provider had withheld the tax from the amount i had received back...when i got my 1099 back it only had the amount of the 401k...do i still need to pay taxes again on this or do i need to contact the company?

Oh I forgot to mention that they also did withhold the early withdrawal penalty as well as the federal tax deduction...

Answer 1

If you are certain that the distribution had taxes withheld, you need to contact the company administering the 401(k). As it is, you will be subject to both income tax and the penalty for early withdrawal on your distribution. If they withheld taxes from your distribution and you are not getting credit for it on your 1099-R, then you are out of that money unless they change it. At the very least, they should have withheld the 10% early withdrawal penalty. The only time they don't do that is when you do a rollover of the 401(k) distribution to an IRA.

Answer 2

Any time you receive a form from a reporting agency ie; brokerage (1099-B), employer (W-2), retirement fund (1099-R) etc and it doesn't reflect your records, contact the Company. The human resource or accounting departments are usually the ones you deal with.
Remember even though you did have the taxes withheld, you are probably due a 10% penalty for early withdraw. There are some exceptions to this penalty.


good luck & blessing