We took out our PERA retirement early and paid taxes up front do we still get penelized at tax time?

Posted by Dolores
cwyetta asked:


WE took out the PERA before retirement.

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This entry was posted on Thursday, May 28th, 2009 at 9:48 pm and is filed under United States. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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2 Responses to “We took out our PERA retirement early and paid taxes up front do we still get penelized at tax time?”

  1. Wayne Z Says:
    May 31st, 2009 at 4:36 am

    Caffeinated Content

    You didn’t pay taxes upfront. You had taxes withheld from the distribution.

    There is no way to give you an accurate answer without knowing more about your income.

    The distribution is counted as income on your 1040 where it is subject to income tax plus a 10% penalty. 99 times out of 100, the 20% withheld does not cover your entire tax bill from the distribution so you will probably have a much smaller refund than you are used to or even owe.

  2. v b Says:
    June 2nd, 2009 at 1:41 pm

    Create a video blog

    The 20% withheld when you took the money was an estimate. 10% for tax and 10% for penalty.

    Your tax bracket probably ISN’T 10%. If you are in the 15% or 25% bracket, you were 5 or 15 cents SHORT on every dollar you took out. If you took a lot of money out, you will most likely owe when you file.

    (If this is your ONLY income for the year, you could even get a refund…but it all depends on the rest of your income.)