- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
Payment of taxes owed is not an exception to the 10% early distribution penalty when using a 401(k) account.
The amount withdrawn is entered on your tax return as ordinary income and taxed at your current tax rate The 10% early withdrawal penalty is assessed on your federal tax return as a tax liability.
If the total of all tax payments is greater than your total tax liability then you will receive a tax refund for the overpayment.
‎February 4, 2025
11:28 AM