StressedinMI
Mar 20, 2008, 06:03 AM
I changed companies in '05 and withdrew from my 401K to use as a down payment on a new home. The total amount in my 401K was $56K, however I had a $15.8K loan that was in repayment. The 1099-R form I received then was for $36.5K with $7,294.61 Fed Tax withheld (the Total Distribution box was also checked). Now, 2 years later, I receive a 1099-R form for the remaining $15.8K with no federal tax withheld and I'm on the hook for the taxes and penalties. Is there any reason I wasn't taxed for the entire amount in '05? Would it benefit me to amend my tax return in '05 and have the 1099-R corrected for this years return? It seems as though my former company has made the error in not reporting my entire amount in '05 and I'm paying for it now!