Cashed in 401k after going out on long term disability. If disbursement was coded 1 vs disability, does that effect the amount of taxes owed? Taxes paid when 401 cashed
I paid the 10% taxes when I cashed in my 401k.
posted
June 1, 20199:06 PM
last updated
June 01, 20199:06 PM
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Cashed in 401k after going out on long term disability. If disbursement was coded 1 vs disability, does that effect the amount of taxes owed? Taxes paid when 401 cashed
paid the 10% taxes
You will still owe regular income taxes, but probably not an early withdrawal penalty. The 10% will be applied against what you owe for Federal (which may be at a higher rate than 10%).
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