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babbel5
New Member

Thinking of pulling some funds from my retirement account, understanding that would be taxable but exactly how does it effect one when filling taxes in 2019.

 
2 Replies
VolvoGirl
Level 15

Thinking of pulling some funds from my retirement account, understanding that would be taxable but exactly how does it effect one when filling taxes in 2019.

From what?  A 401K or an IRA?  It will add to your income and be taxable and may push you into a higher tax bracket.  And if you are under 59 1/2 there is an 10% Early Withdrawal Penalty unless you have an exception.  So you can lose like up to 50% with taxes and penalties.  It's usually not a good idea to take a withdrawal.  

Anonymous
Not applicable

Thinking of pulling some funds from my retirement account, understanding that would be taxable but exactly how does it effect one when filling taxes in 2019.

if it's an employer 401k,  the plan may permit  loans to participants.     if so, you'll have to make payments including interest and it must be repaid in 5 years otherwise any non-repaid amount becomes taxable.  the advantage of a loan is that it is not taxable and there is no early withdrawal penalty.  speak to your human resource department.  

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