I'm 55 years old quit job need to withdraw money from 401k what penalties taxes I have to pay if I leave in texas

juanbldrs · ‎February 3, 2025

xmasbaby0 · ‎February 3, 2025

Living in Texas has nothing to do with it. You have no state income tax in TX. You will pay federal tax on money you take from your 401k. If you are younger than 59 1/2 there is a 10% early withdrawal penalty and there will also be ordinary income tax. You will get a 1099R that will have to be entered on your next tax return.

**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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xmasbaby0 · ‎February 3, 2025

Living in Texas has nothing to do with it. You have no state income tax in TX. You will pay federal tax on money you take from your 401k. If you are younger than 59 1/2 there is a 10% early withdrawal penalty and there will also be ordinary income tax. You will get a 1099R that will have to be entered on your next tax return.

**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'm 55 years old quit job need to withdraw money from 401k what penalties taxes I have to pay if I leave in texas