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    mesegars's Avatar
    mesegars Posts: 5, Reputation: 1
    New Member
     
    #1

    Feb 14, 2008, 05:51 PM
    401k taxes
    I took out 18.000 from my 401k last year. The company I worked for was sold. I paid fed taxes on this money when I took it out. I was 59 years old. This year when I filed my taxes I gave h&r my form from them where I paid all fed taxes. They added the total amount I drew out to my total income after I paid taxes on it already. I am confused I had to pay fed tax twice on the withdrawel. Is this correct to do?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #2

    Feb 14, 2008, 09:09 PM
    Yes, on the tax return this 401K withdrawal will be added in your total income to figure out your tax. Then what you have already paid will be subtracted from it.

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