Thursday, December 15, 2011

When do I pay the fee for early 401(k) withdrawal?

Taxes were withheld when I took the money out, but I understand there's a fee for early withdrawal. I entered this information when I did my taxes online, but it never mentioned a fee.|||As one person said, the penalty is reported on Line 59.





You should have received either a 1099-INT or 1099-OID which told you the amount of penalty you owe. Do not forgot to put this amount on Line 30 of Form 1040, as an adjustment to income. The penalty acts as a net tax, but the adjustment will help you lessen its bite. Your taxable income is reduced by the amount of the penalty.|||When you file your tax return. The withheld taxes are just an estimate of what you'll owe so that will also be finalized when you file your return.|||The amount will show up on line 59 of your 1040 return. The penalty is 10%

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