johnd84
Employee Tax Expert

Get your taxes done using TurboTax

Hi terrycsanders,

Thanks for your question. The benefit of a 401k is that the money is put in before taxes are taken out and grows tax deferred. So the taxes on the 401k are deferred until the time they are withdrawn. You will most likely have to pay income tax anytime a 401k amount is taken out. I hope this helps 🙂 

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