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Asked 3/12/2011

I lost my job in 2010, I removed my 401k from the employment and moved it elsewhere. I have removed $25k since. How do I report this? as income? and

I was also eligible for retirement and receiving my pension as part of my income.

Also since I moved my 401k is there anything I need to recap for the irs?

 
 
 
 
 
Answers

Answer 1/3 - Submitted 3/12/2011

Any money you take out of 401K is taxable. You should have received a tax form from the financial company you removed your money from. If you didn't you need to give them a call.

 
 

Answer 2/3 - Submitted 3/13/2011

The amount you rolled from from the 401(k) into another qualified plan will have a 1099-R issued, probably with code G on it. This wouldn't be taxable, unless your "qualified plan" was a Roth IRA.

The $25,000 that you later took out will also get a 1099-R, and this is subject to income tax and possibly the 10% early distribution penalty.

You show both on the tax return as distributions, only the second having any tax effect.

If you didn't roll the 401(k) into a qualified retirement plan, then the whole distribution was taxable.

 
 

Answer 3/3 - Submitted 3/14/2011

Thank you both for your response, I got info from both but the second went into more detail I could use.

Thanks again

 
 
 
 
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