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I am 61 not retired yet but want to take money out of my 401K without borrowing it, what are my tax liabilities?
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I am 61 not retired yet but want to take money out of my 401K without borrowing it, what are my tax liabilities?
You will pay ordinary income tax on the distribution. You are not subject to an early withdrawal penalty at your age. In January you will receive a 1099R for the distribution, which you will enter on your tax return. The income will be taxed as part of your other taxable income.
**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.**
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I am 61 not retired yet but want to take money out of my 401K without borrowing it, what are my tax liabilities?
Is this a plan with your current employer? Check first to see if they will even allow you to take anything out.
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I am 61 not retired yet but want to take money out of my 401K without borrowing it, what are my tax liabilities?
You will pay ordinary income tax on the distribution. You are not subject to an early withdrawal penalty at your age. In January you will receive a 1099R for the distribution, which you will enter on your tax return. The income will be taxed as part of your other taxable income.
**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.**
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I am 61 not retired yet but want to take money out of my 401K without borrowing it, what are my tax liabilities?
Depending upon the amount, you may wish to have taxes withheld from the distribution, or make Federal and/or State estimated tax payments if appropriate.
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