If I report my 401K distribution, will I have to pay taxes on 401K distribution income again if taxes were withheld from my distribution?
Regarding taxes on 401K distribution funds, your Form 1099-R will show taxes withheld from the distribution — Usually 20%. Depending on your tax bracket, the amount withheld might not be enough to cover the tax on the distribution. In that case, you’ll have to pay more tax. However, if you’ve already had taxes withheld, you won’t be subject to double taxes on 401K distribution funds.
If the tax withheld is more than you owe, you’ll get a refund or a credit of taxes on 401K distribution funds against other taxes owed.
Learn more about reporting Roth IRA contributions with advice from the tax experts at H&R Block.
Learn more about how Roth IRA contributions are taxed with help from the experts at H&R Block.
Are Social Security benefits considered taxable income? Learn more about Social Security taxability and how it relates to retirement income at H&R Block.
Learn more about social security tax and how it affects your income and benefits from the tax experts at H&R Block.