@Matt 126 wrote:
You are great thank you so much for your valuable time and effort. So I proceeded, and 5000, there seems to still be a FED tax of 200.00. So I am not sure that this is?
Are you talking about withholding? Your plan trustee may withhold tax as required by law. That is not the eventual tax you owe, it is an estimate. Your actual tax is calculated on your tax return and you get credit for any withholding. If your your total payments and withholdings (from all your jobs, this withdrawal etc.) is more than your overall tax (from all income and deductions) that's where refunds come from.
I believe the CARES act allows you to not pay the normal mandatory withholding at time of withdrawal, but you would have to contact your plan trustee about that. That doesn't change your tax anyway, just when you pay it.
