i'm 60 yrs oldretired, company closed and i'm going to take my 401 lump sum of$260000 . how much will that effect what i have to pay in for taxes next year. i know i will be in a different tax bracket. Will the taxesthey take out on my 401 be included with my work taxes for the year when i file.
Do you need all of it? You can rollover part or all to a Traditional IRA account to defer the taxes. You have 60 days to do a rollover. The best way is to have it directly transferred from the 401K.
Yes, the gross amount and taxes withheld get reported on your tax return. You will get a 1099R at the end of the year to enter into your return.
don't take a lump sum from a 401k. instead do a trustee-to-trustee transfer to an IRA you set up. the new trustee will assist you with the paperwork.
then take small distributions when and if needed.