General/Taxability Issues including Distributions, Early Withdrawals, 10% Additional Tax, Defaulted Loans
Question: This is the first year that I received a distribution of benefits from my 401(k) plan. Are any of my benefits taxable? |
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Answer: If you receive retirement benefits in the form of pension or annuity payments, the amounts you receive may be fully taxable, or partly taxable in the year received. Your pension or annuity is usually fully taxable:
Generally, your pension or annuity will be partially taxable:
If you receive pension or annuity payments before age 59-1/2, you may be subject to an additional 10% tax on early distributions. See Publication 575. |
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Page Last Reviewed or Updated: December 04, 2008