Did I miss reporting a retirement transfer on my taxes?

General
21

@Lin

a retirement account transfer

What exactly did you do? “Transfer” isn’t really clear. Did you withdraw money, roll over an account, or do a Roth conversion?

22

Bowie said:
@Lin
a retirement account transfer

What exactly did you do? “Transfer” isn’t really clear. Did you withdraw money, roll over an account, or do a Roth conversion?

I withdrew money from my retirement account.

23

@Lin
And then what did you do with it?

24

Linden said:
@Lin
And then what did you do with it?

I used it.

25

Lin said:

Linden said:
@Lin
And then what did you do with it?

I used it.

Then that’s taxable, and if you’re under 59.5 or didn’t use it for a specific purpose, you’ll owe an extra 10%. If your state has an income tax, they’ll be contacting you too. Plus, interest is building at what I believe is an 8% rate per year.

26

@Lin
And this was from a traditional (not Roth) account, right?

27

Draft an amended return to check if it lines up with the IRS notice. Then you’ll know whether to agree with the notice or file an amended return.