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Submitted By: someone
Answered: May 3, 2021 11:01 pm
Answered: May 3, 2021 11:01 pm
I was not working in 2020 and took money from my retirement plan to live on. Do I have to pay taxes on this money?
Yes. However, if the distribution from a qualified retirement plan or IRA is a “coronavirus-related distribution,” then no 10% penalty applies for anyone under age 59½. What’s more, a coronavirus-related distribution may be redeposited in the same or other retirement account within three years, allowing for a recovery of taxes paid on the distribution.
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Tax Glossary
Amount realized
A statutory term used to figure your profit or loss on a sale or exchange. Generally, it is sales proceeds plus mortgages assumed or taken subject to, less transaction expenses, such as commissions and legal costs.
