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

I have a question about reporting Roth IRA contributions — Can I get direction on how to report Roth IRA contributions

Learn more about reporting Roth IRA contributions with advice from the tax experts at H&R Block.

My son has been receiving Social Security survivor benefits since his dad died. In the past, I haven’t had to claim any

Do you have to claim Social Security survivor benefits for your child? Learn more from the tax experts at H&R Block.

10 Reasons to Consider Contributing to an IRA

Should you open an IRA? Learn more about the advantages of Roth IRAs and traditional IRAs with this helpful list from H&R Block.

I have a question about rolling 401K into IRA and reporting 401K rollover into IRA. If my previous employer made me roll

Learn more about rolling your 401K into an IRA with help from the tax experts at H&R Block.