Visitor I

401k

taking an early withdrawal from account.  they will charge 20%, but what about the 10% by the government?  Is that mandatory?

1 Comment
TurboTax Specialist

401k

The 20% federal tax withheld is just to help you not incur an underpayment penalty. It functions like the withholding on W-2 income. The 10% under early withdrawal penalty will be calculated on your return (when you enter your 1099-R) and added to your tax liability for the year.