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 401K rollover funds. I recently changed jobs and I rolled over a retirement account fr

Learn more about reporting a 401K rollover with tips from the tax experts at H&R Block.

If I contribute to a 401K plan, can I open IRA to reduce taxes?

Lean how opening an IRA can help reduce your tax burden with advice from the tax experts at H&R Block.

Say I withdrew less than I contributed to my IRA — IRA withdraw less than contributions made — Are my withdrawals exem

Learn how making an IRA withdraw less than your contributions will impact your tax return with advice from the tax experts at H&R Block.

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.