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New Member
posted Oct 25, 2020 2:45:29 PM

Under the Care Acts we meet the requirements to withdraw from out 401K --- I need to know besides paying the 24% for Federal taxes

We live in IL -- I work in MO and my wife works in IL --- will these state tax the 401K withdraw under the Cares Act

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1 Replies
Level 15
Oct 25, 2020 3:53:34 PM

The CARES act only exempts the additional 10% early distribution penalty if you are under age 59 1/2. It does not change the normal tax on the distribution which is ordinary income taxed at your margional tax rate.