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Early IRA withdrawal in Jan 2014. Will it show up on my 2014 taxes or 2013 taxes?

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  • Early IRA withdrawal in Jan 2014. Will it show up on my 2014 taxes or 2013 taxes?


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Answer #1 | 02/01 2014 11:28
it will be 2014 tax, but keep in mind the trustee may automatically withhold 10% penalty tax plus the regular tax rate before giving out your money: example $10,000 to be withdrawn, the trustee may be able to take out $1000 for the penalty and about $2500 in taxes, leaving you with a $6500 check.
Answer #2 | 02/01 2014 11:47
You took it in 2014, it's taxed in 2014.
Answer #3 | 02/01 2014 11:46
2014.
Answer #4 | 02/01 2014 13:08
It is a 10% federal penalty. Your state also has a penalty. Then it is also added to your income for the year for income taxes both federal and state. The distribution must go through them. You cannot just transfer to your checking. It costs more than 10%.
Answer #5 | 02/01 2014 13:35
The taxes will be deducted before Scott Trade issues you a check. And, it will show up for your 2014 taxes.
Answer #6 | 02/01 2014 22:48
2014, but you'll lose a lot more than just 10%. You lose the 10% early withdrawal penalty, plus you also lose whatever the regular income tax is for a person with your total amount of income. For example, if your total income, including the $5000 and whatever other money you make, is an amount for which income tax is 25%, then you lose a total of 35%.
Answer #7 | 02/01 2014 17:02
And now in the 2014 tax year so any amount received during the 2014 tax year will have to be correctly reported on your 1040 FIT during the 2015 tax filing season for the 2014 1040 FIT return. You will receive the 1099-R from the payer of the funds during the 2015 tax filing season for the 2014 tax year. Talk to the trustee of your plan and ask them what he process will have to be done to accomplish exactly what it really is that you do want to get done at this time in your life for this purpose. Hope that you find the above enclosed information useful. 01/02/2014

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