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New Member
posted Mar 13, 2025 8:35:30 AM

for someone over 65, is a one time lump sum payment from a 401K taxable?

0 2 546
2 Replies
Expert Alumni
Mar 13, 2025 8:36:42 AM

Yes. it is included in your taxable income, but it is not subject to the 10% early withdraw penalty.  

Level 15
Mar 13, 2025 8:37:23 AM

Yes, it is taxable.  There is no age limit exception for a withdrawal from a 401(k).