<lerner[at]ka.net> wrote:

- quote -

It sounds right for a retirement plan distribution that is
fully taxable and subject to the premature distribution
penalty. Whether it's right for your situation or not
depends on your facts.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I finished I think with Turbo tax. It put the gross amount
of the 1099-R on line 16b and it put the amount of the 10%
tax of the gross amount on line 60 and the amount is
correct. It printed a NO beside line 60 which means I don't
have to send a 5329. Does it sound right?

Thanks again.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Thanks I understand everything now. Even how to skip to form
5329 in the software if necessary for the 1099-R

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

lerner[at]ka.net wrote:

- quote -

Piece of cake (if you follow the instructions)

- quote -

You're right, not a good choice.

- quote -

The payment is 100% taxable. Enter the Box 1 amount on Line
16a of your 1040, the Box 2 amount on Line 16b. Add the Box
amount to your other withholding on the back of the 1040.
Better yet, the software will just have you enter the
relevant amounts into a worksheet and it will put them in
the right places.

- quote -

Yup, but you get credit for the withholding.

- quote -

It all works better if you have some idea of what the
final result is supposed to be, otherwise it GIGO.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

<lerner[at]ka.net> wrote:

- quote -

Yes, all software packages will handle this.

- quote -

Yes.

- quote -

Correct

- quote -

Yes

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

It's getting late I know and want to buy tax software. Will
they all work for what I need to do?

I have a W-2
I have a 1099-B Stocks
I have a 1099-R (A first for me)

I am only 50 years old. A few months after I quit a company
I worked for they sent me a letter saying I would have to
take a lump sum or roll over the plan (1099-R) They company
tried to get out of paying people but something must have
happened that made them pay. It was stupid but I took the
lump sum. Not sure how to file or what the rules are for me
even after reading 11 pages of instructions on the 1099-R.

Will I pay the 10% penalty? Also on my 1099-R Box 1 and Box
2 are the same amount but in box 4 they did take out Fed
income tax. The check I actually got was Box 1 less the Fed
tax on line 4.

Do I pay on the gross amount before taxes are taken out?

Thanks I just wanted to ask so I will know if the tax
software is screwing up or not.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >