I am 61 not retired yet but want to take money out of my 401K without borrowing it, what are my tax liabilities?

smokin39 · ‎June 3, 2019

xmasbaby0 · ‎June 3, 2019

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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SweetieJean · ‎June 3, 2019

Is this a plan with your current employer? Check first to see if they will even allow you to take anything out.

xmasbaby0 · ‎June 3, 2019

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.**

SweetieJean · ‎June 3, 2019

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.

I am 61 not retired yet but want to take money out of my 401K without borrowing it, what are my tax liabilities?