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New Member
posted Jun 1, 2019 9:06:44 PM

Cashed in 401k after going out on long term disability. If disbursement was coded 1 vs disability, does that effect the amount of taxes owed? Taxes paid when 401 cashed

I paid the 10% taxes when I cashed in my 401k. 

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Level 15
Jun 1, 2019 9:06:45 PM

paid the 10% taxes

You will still owe regular income taxes, but probably not an early withdrawal penalty. The 10% will be applied against what you owe for Federal (which may be at a higher rate than 10%).

Remember state taxes as well.