Solved: I took $30K out of my 401B at age 62. They took $6K from that. I know I have to claim this as income, but will I get a good portion of this money back?
cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
New Member

I took $30K out of my 401B at age 62. They took $6K from that. I know I have to claim this as income, but will I get a good portion of this money back?

just needed to know how much of the $6000 will I get back when I file my income tax they withheld 20% of my withdrawl - I was 62 when I took the $30K

1 Best answer

Accepted Solutions
Highlighted
Level 7

I took $30K out of my 401B at age 62. They took $6K from that. I know I have to claim this as income, but will I get a good portion of this money back?

There is no way anyone can tell you how much (if any) of the $6,000 you may receive as part of any refund.  It all depends on your overall tax profile and the tax bracket you are in.  For example, if you are in the 25% marginal tax bracket, you not only may not get any of the $6,000 back, you may actually owe an additional $1,500.  On the other hand, if you are in the 15% bracket, you may get up to $1,500 of your $6,000 back.  I say "up to" because it also depends on how you may have (or may not have) prepaid your Federal income taxes through payroll withholdings or estimated payments on the rest of your income.  The $30,000 is just part of the entire tax return and is not considered separate and apart from the rest of your income.  The only way to know is to complete your entire tax return and see how the chips fall.

View solution in original post

1 Reply
Highlighted
Level 7

I took $30K out of my 401B at age 62. They took $6K from that. I know I have to claim this as income, but will I get a good portion of this money back?

There is no way anyone can tell you how much (if any) of the $6,000 you may receive as part of any refund.  It all depends on your overall tax profile and the tax bracket you are in.  For example, if you are in the 25% marginal tax bracket, you not only may not get any of the $6,000 back, you may actually owe an additional $1,500.  On the other hand, if you are in the 15% bracket, you may get up to $1,500 of your $6,000 back.  I say "up to" because it also depends on how you may have (or may not have) prepaid your Federal income taxes through payroll withholdings or estimated payments on the rest of your income.  The $30,000 is just part of the entire tax return and is not considered separate and apart from the rest of your income.  The only way to know is to complete your entire tax return and see how the chips fall.

View solution in original post

v
Privacy Settings