claim that on my taxes. I understand its a retirement plan but it only gives me the option to mark as an IRA... how would I classify my 401k info while I do my taxes?
All your help is appreciated!
2007-02-21 08:52:00 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
WHAT only gives you the option to mark as an IRA? You'd show the total amount withdrawn as pension income on line 16 of the 1040. Then if you are subject to the 10% penalty for taking it out before age 59-1/2, then you'd show that 10% penalty on line 60. You'd attach a form 5329 to show the calculation of the penalty. If you were 59-1/2 when you took it out, then there isn't a penalty.
2007-02-21 09:03:16 · answer #1 · answered by Judy 7 · 5⤊ 1⤋
This is reported as a pension on line 16a and 16 b of the 1040
or lines 12a and 12b of the 1040A
If you were not 59 1/2 when you cashed out the 401K in addition to tax on the distribution you will also owe the 10% penalty for early withdrawl
2007-02-21 16:57:54 · answer #2 · answered by Rob 7 · 2⤊ 1⤋
Rob gave you the right answer. If you have tax software then enter it in as INCOME (sounds like you're trying to do that but are in a deduction section). Same place that you do your w-2's they should ask about 1099-R's.
2007-02-21 19:41:55 · answer #3 · answered by digdowndeepnseattle 6 · 0⤊ 1⤋
It will be taxed according to your tax bracket if you are not at the retirement age, in order not to have penalties or to avoid taxes you have 30 days to roll it into an IRA. If you have any questions feel free to email me I am a licensed stockbroker bryb88@yahoo.com
2007-02-21 18:07:43 · answer #4 · answered by bditty88 1 · 0⤊ 3⤋
it will 1. Be income for that years taxes
and probably
a 10% penalty if you withdrew it early (what is it 62.5 years?)
might need to get some real help on this one - this is YOUR money!
2007-02-21 16:55:46 · answer #5 · answered by tomkat1528 5 · 0⤊ 2⤋