I have withdrawn $400,000 from my IRA this year, how much tax do i need to have pay on this money? Both for federal and WI state?

I am concerned about how much tax I should have withheld from my $400,000.00 withdrawal from my 401K

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1 Best answer

Level 15

Jun 5, 2019 2:43:16 PM

Go to this IRS website for the 2016 Tax Tables and you can calculate the amount of taxes, assuming that the entire amount withdrawn is taxable income - https://www.irs.gov/pub/irs-pdf/i1040tt.pdf#page=90

If you are under the age of 59 1/2 at the time of the withdrawal, there will be a 10% early withdrawal penalty assessed on your tax return.

Or if the withdrawal is from a 401(k), see this IRS Tax Topic for exceptions to the early withdrawal penalty - https://www.irs.gov/taxtopics/tc558.html

Distributions made to you after you separated from service with your employer if the separation occurred in or after the year you reached age 55, or distributions made from a qualified governmental defined benefit plan if you were a qualified public safety employee (state or local government) who separated from service in or after the year you reached age 50.

Level 15

Jun 5, 2019 2:43:16 PM

If you are under the age of 59 1/2 at the time of the withdrawal, there will be a 10% early withdrawal penalty assessed on your tax return.

Or if the withdrawal is from a 401(k), see this IRS Tax Topic for exceptions to the early withdrawal penalty - https://www.irs.gov/taxtopics/tc558.html

Distributions made to you after you separated from service with your employer if the separation occurred in or after the year you reached age 55, or distributions made from a qualified governmental defined benefit plan if you were a qualified public safety employee (state or local government) who separated from service in or after the year you reached age 50.