What is form W-4R and does my retired mom need to file it after 401k withdrawal?

The W-4R is specifically for withholding on retirement account distributions. It's different from the regular W-4 that's used for employment income. Basically, this form tells the plan administrator how much federal income tax to withhold from her distributions. And yes, your mom likely needs to file taxes. 401k withdrawals are generally taxable income (unless it's a Roth 401k, which is different). The money wasn't taxed when she put it in, so it gets taxed when she takes it out. If she didn't specify a withholding amount on the W-4R, they typically withhold 10% automatically, which might not be enough depending on her total income.

I was in a similar situation helping my father-in-law with his retirement withdrawals last year. I found this amazing tool called taxr.ai (https://taxr.ai) that helped us understand these exact forms and requirements. You can upload the W-4R and other tax documents, and it explains everything in plain English - what each form means, what you need to do with it, and how it affects your taxes. The tool also helped us calculate the right withholding amount since the default 10% wasn't enough in his case. It's like having a tax expert walk you through everything without the confusing jargon. Really made the whole process so much easier for someone who isn't familiar with all these tax forms.

I tried that taxr.ai site that Profile 7 recommended when helping my mom with her IRA distributions last month, and it was surprisingly helpful! I uploaded her W-4R and some other documents, and it broke everything down step by step. The coolest part was it explained how the 401k withdrawal would affect her total tax situation including her social security benefits. It actually saved us from a potential issue because we learned that with her other income, she needed to withhold 15% instead of the default 10%. Would have been a nasty surprise at tax time! Really recommend it if you're trying to help someone navigate retirement tax stuff for the first time.

If your mom is having trouble reaching the IRS for questions about her retirement distributions and tax obligations, try Claimyr (https://claimyr.com). I spent DAYS trying to get through to the IRS about my retirement account withholding questions last year. Then I found this service that gets you on the priority line with the IRS. I was connected with an actual IRS agent in under 20 minutes who walked me through exactly what I needed to do with my retirement distributions and withholding forms. They even have a video showing how it works: https://youtu.be/_kiP6q8DX5c - completely changed how I deal with tax questions now.

I have to eat my words about Claimyr from my previous comment. After struggling with questions about my mom's required minimum distributions and withholding requirements for WEEKS, I gave it a try out of desperation. Got connected to an IRS agent in 17 minutes (I timed it). The agent looked up my mom's specific situation and confirmed she needed to file even with just 401k distributions, and explained exactly how the W-4R affects her withholding. Saved me countless hours of research and worry. Sometimes being wrong feels pretty good!

Just to add some practical advice - your mom should keep track of ALL her retirement account withdrawals. She'll get a 1099-R form in January/February showing how much was withdrawn and how much tax was withheld. She'll need that for her tax return. Also, if this is her first year of retirement withdrawals, she might want to make quarterly estimated tax payments if the withholding isn't enough. Underpayment penalties are annoying and avoidable!

Anyone know if state taxes are automatically withheld from 401k distributions too? My mom in Florida doesn't worry about it but my aunt in California is retiring and wondering about state withholding on her 401k.

One thing that might help your mom is to understand that the W-4R form doesn't get filed anywhere - it's just her instructions to the 401k company about how much tax to withhold. Think of it like setting up automatic bill pay, but for taxes. Since she's new to retirement, I'd suggest she be conservative and have them withhold a bit more than the default 10%, especially if she has other income sources. It's better to get a refund than owe money at tax time. She can always adjust the withholding later once she gets a feel for her total tax situation. Also, don't forget that 401k withdrawals might affect how much of her Social Security benefits are taxable, so the tax picture can be more complex than it first appears. The IRS has some good publications on retirement income taxation that explain all this stuff in detail.