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Closed 401K - Income?

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GottaGo

Member
What is the name of your state? NJ
I closed out my 401K in 2006. Will the amount I received be considered as part of my 2006 gross income or will it show somewhere else?
 


GottaGo

Member
thanks, tranquility, I did actually receive this form. i was just curious as to whether or not this will be considered as part of my gross income. Specifically i wanted to know if it will increase the taxes i will have to pay, of course not forgetting the 10% penalty i will probably have to pay on that specific amount. I did pay taxes on it when i took it out. I am self-employed an concerned about this money throwing me into another tax bracket.
 

tranquility

Senior Member
Yes you will pay taxes beyond the excise tax penalty. efflandt described where you put the gross distribution and taxable amount portions of the form. The "taxes" you paid were withholding taxes--a prepayment of what you will owe. They are required to be taken out on a distribution which is not a qualified rollover. You won't know how much your actual taxes are until you complete your 1040 (and state return).
 

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