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I had 401k at my job ,but got laid off I closed my 401k because i needed the money. they filed the taxtes outon meat that time do they file the extra 10% for closing it?

2007-03-14 02:54:05 · 5 answers · asked by lorriec1967 1 in Business & Finance Taxes Other - Taxes

5 answers

You will report the total withdrawl amount of the 401K (do not subtract the tax withheld). on line 16A and 16B of the 1040

You need to complete form 5329 to compute the penalty
The 10% penalty gets reported on line 60 of the 1040

The taxes withheld will be reported on line 64 along with any other Federal taxes withheld

http://www.irs.gov/pub/irs-pdf/f5329.pdf

2007-03-14 03:56:04 · answer #1 · answered by Anonymous · 1 0

They did not file your taxes, they just took out some estimated tax amount from your withdrawal. You still have to file income tax return and at that time the actual tax and penalty will be calculated and if they took too much, you will get some money back, if they took too little, you will owe. If that 401K account was only opened in 2006, you probably will not even owe any penalty.

2007-03-14 03:00:52 · answer #2 · answered by Alexander K 3 · 1 1

they didn't file taxes..they withheld 20% of the distributed amount just like money is withheld from your paycheck. No different...

On your next tax return you will have to declare an extra 10% tax for early withdrawals. If your taxable income (all income not just the distribution amount) is low enough and you had enough withheld you may not actually owe any more money...your refund just may be smaller.

Prior poster told you how to report on your tax return..write that down...it's correct.

2007-03-15 04:17:49 · answer #3 · answered by digdowndeepnseattle 6 · 0 0

The 10% penalty will be assessed on your tax return. There might or might not have been enough taxes withheld to cover what's due.

2007-03-14 08:59:54 · answer #4 · answered by Judy 7 · 0 0

Likely you'll end up owing taxes on it. You may want to meet with a tax advisor to make sure everything is order so you don't get screwed in the long run.

2007-03-14 03:01:40 · answer #5 · answered by Sunidaze 7 · 0 1

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