taxes

[209012_03503]

We are just retired, our income this year will be 53,000. We would like to take 45,000 or 85,000 out of our 401 K. we have paid all the correct taxes on all the income, including the 401K. with this combined income of 98,000 or 138,000 put us in a much higher tax bracket.

[TeriH]

If you pull money from a traditional 401k, then there would be taxes owed.  If the money comes from a roth 401k, taxes have already been paid, and nothing additional would be owed on those $'s.  Assuming you are over 59 1/2.

The IRS allows penalty-free withdrawals from retirement accounts after age 59½ and requires withdrawals after age 72. (These are called required minimum distributions, or RMDs). There are some exceptions to these rules for 401(k) plans and other qualified plans.