Question

Will I have to pay taxes on 401K distribution income again if taxes were withheld?

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

Farm Income Tax Implications

Learn more about farm income and how It affects your taxes from the tax experts at H&R Block.

For Pro Golfers, Tough Taxes Are Par for the Course

Professional golfer taxes can be complicated and confusing. Learn more about tricky golfer tax issues like travel deductions and residency rules with H&R Block.

Special Cases – Mutual Funds

Learn more about receiving a short-term mutual funds loss, from the tax experts at H&R Block.

Catch-up Depreciation On Rental Property

If you have owned a rental property for many years but have never claimed depreciation, can you catch up and claim it now? Learn more from the tax exp