[hounddog3]

How do you claim money recevied from a 401k on your taxes

[ebaines]

Your plan administrator will send you a 1099-R form that reports the amount of withdrawal and the amount of federal tax withheld. You enter the amount of the withdrawal on line 16 of Form 1040 (“Pensions and Annuities”). You report taxes withheld on line 64 (“Federal income tax withheld from Forms W-2 and 1099”).

If this withdrawal is subject to the early withdrawal penalty you report the 10% penalty on line 60 (“Additional tax on IRAs, other qualified retirement plans, etc.). Your 1099-R should have a "reason code" listed for the distribution. If it is "1" then the administrator is saying that this was an early withdrawal, subject to the 10% penalty.

Form 5329 may also be required, for example if you are claiming an exemption from the early withdrawal penalty.

Also, if you live in a state or municipality that has income tax you have to report the withdrawal as income to them as well.