Question

If I report my 401K distribution, will I have to pay taxes on 401K distribution income again if taxes were withheld from my distribution?

Answer

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.

Related Topics

Related Resources

What Is Cryptocurrency? | H&R Block

What is Cryptocurrency? Bitcoin, Litecoin, and the like leave many wondering how to classify this new form of investment. Find the answer at H&R Block.

Taxes in the Gig Economy

The gig economy and taxes go hand-in-hand. If gig work is your primary form of income, review these important tax tips from our H&R Block tax professionals.

Holiday Bonus Taxes

Congratulations on the Bonus! Learm more about the tax rate at H&R Block - whether you receive a holiday or cash bonus, it will apply to you.

How To Offset Capital Gains | H&R Block

Understanding how to offset capital gains is a topic that many tax filers avoid. Brush up on key terms and the process with advice from H&R Block tax pros.