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New Member
posted May 31, 2019 6:10:14 PM

How much can I expect to pay back in taxes for cashing out part of a 401K (roughly 20K), having already paid 20%in taxes and 10%penalty?

I cashed out part of my 401K (20K) after leaving my job this year. 20% was withheld for taxes, as well as a 10% penalty. My question is: After filing my tax return in 2017, is there an additional percentage in taxes I should expect to pay? Or will the 20% already withheld cover that?

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1 Best answer
Alumni
May 31, 2019 6:10:16 PM

It depends on how much other income you have. The 401k withdrawal is added to your other income and taxed at whatever your marginal tax rate is. If your marginal tax rate is more than 20%, then you will owe more income tax.

4 Replies
Alumni
May 31, 2019 6:10:16 PM

It depends on how much other income you have. The 401k withdrawal is added to your other income and taxed at whatever your marginal tax rate is. If your marginal tax rate is more than 20%, then you will owe more income tax.

Level 15
May 31, 2019 6:10:16 PM

Also remember State taxes;.

New Member
May 31, 2019 6:10:18 PM

Meaning I will need to pay additional state taxes?

Level 15
May 31, 2019 6:10:19 PM

Which State? Were any state taxes withheld?