401(k) withdrawal

Forum|Forum|9 months ago
October 13, 2025
1 reply
33 views

I unfortunately lost my job (am under 35). I have to withdraw my 401(k) to meet financial obligations. If I withdraw my 401(k) now, 14% tax is being withheld from my total savings and the balance will be deposited into my bank. Apart from the 10% penalty do I have to still pay tax next year when I file my return? Is there a way I can calculate now how much more tax I will be liable for next year in addition to the 14% tax being charged?

Not A Product Question

xmasbaby0

Level 15

You will get a 1099R for the money taken from the retirement plan. When you prepare your tax return, you will enter the information from the 1099R which will include the tax that was withheld. Just like tax withheld and shown on a W-2, when all of your income and all of the tax withheld from that income is entered, the software will reconcile your tax liability and determine if you should receive a refund or if you will owe more tax.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**