State - MA
Hello,
I recently took a cash withdrawal of my 401k and so 20% federal tax and the applicable MA state tax was withheld. The 401k company wired me the funds and in error sent me the gross amount (forgot to take into account that taxes were withdrawn). Now they want me to repay the amount that represented the taxes but those funds have been spent.
My question is: Can they just amend the 1099r to show taxes weren't withheld so I can pay them when I do my tax return? If I don't pay them back and the company write's it off wouldn't it kind of be like I am evading taxes? Esssentially the 1099r will say taxes were withheld but I am not paying them if I don't pay the company back.
Please help!
Hello,
I recently took a cash withdrawal of my 401k and so 20% federal tax and the applicable MA state tax was withheld. The 401k company wired me the funds and in error sent me the gross amount (forgot to take into account that taxes were withdrawn). Now they want me to repay the amount that represented the taxes but those funds have been spent.
My question is: Can they just amend the 1099r to show taxes weren't withheld so I can pay them when I do my tax return? If I don't pay them back and the company write's it off wouldn't it kind of be like I am evading taxes? Esssentially the 1099r will say taxes were withheld but I am not paying them if I don't pay the company back.
Please help!