|
Posted by removeps-groups@yahoo.com on May 7, 2008, 10:56 am
Please log in for more thread options On May 6, 8:11 pm, "removeps-gro...@yahoo.com" <removeps-
gro...@yahoo.com> wrote:
> Probably the first way -- ie. the 1099-R gross distribution will be
> the actual amount minus the $120. If you pay the penalty with post-
> tax dollars, then you can deduct it as an adjustment to income, line
> 30 ("penalty on early withdrawal of savings").
Sorry for typo, should be 1099-Q above. R is for rollovers from 401k
plans and such.
The penalty on early withdrawal of savings is listed on form 1099-
INT. The 1099-Q does not have a field for penalty, so I don't know if
you can deduct it. The following method is one that I considered: say
you contributed 5k to your 529 plan and did not receive a federal
deduction, and your earnings grew tax free by 1k, then of the $120
penalty 5/6*120=100 comes from the original 5k so is considered paid
with post-tax dollars, but I don't know if you can deduct it.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap