@cnj083
Well, if a traditional 401k, and all your other income is exactly the same as last year, then that 5k would be taxed at approximately your marginal tax bracket %. So, if you are normally in the 22% tax bracket, that might add $1100 to your tax liability .
Of course, the 401k provider may have some automatic tax withholding as a part of any distribution, so you should ask them about that. IF they give you a choice as to how much to withhold, you could designate a % about whatever % tax bracket you were in last year, and that wouldn't be unreasonable.....though you might not need that much withheld if you normally get a refund.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
