Withdrew funds from 401K

lsheck

I left an employer and decided to withdraw my funds as I couldn’t roll them into my new employers account. I am under 25 so I assumed a penalty. I had additional federal withholding held, should I have also withheld additional for state (Oregon) to reduce my tax liability? What form will I receive in the mail for this?

kiarab

Hello,

You should receive a form 1099-r reporting your distribution. If this has happened within the last 60 days, you may want to talk to an financial advisor or something, to see if you can roll it over to an IRA and avoid the early withdrawal penalty which is 10%.

Otherwise, yes, you may want to consider withholding extra for Oregon as well. Retirement income is taxable there. If it ends up being more than what you need, the difference will be refunded to you when you file your tax return.