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keywstizbst
New Member

Used 401k money (not loan) to help buy our house. We withheld 10% penalty + 30% for taxes. Will I have to pay est. tax pmts 2018 if pd enough in 2017?

 
4 Replies
SweetieJean
Level 15

Used 401k money (not loan) to help buy our house. We withheld 10% penalty + 30% for taxes. Will I have to pay est. tax pmts 2018 if pd enough in 2017?

That dependents upon your overall tax bracket, and what tax law changes Congress makes.
Did you have any State taxes withheld?
Is the home worth losing 40% or more of your 401(k) funds?
SteamTrain
Level 15

Used 401k money (not loan) to help buy our house. We withheld 10% penalty + 30% for taxes. Will I have to pay est. tax pmts 2018 if pd enough in 2017?

...As long as you don't withdraw more from your 401k during 2018, it shouldn't be a problem.

The tax software may "suggest" estimated 2018 Quarterly estimates if you still have an significant additional Balance Due  on your 2017 tax return when you file it in early 2018....but that usually only occurs if you have to pay the IRS an additional $1000 or more at tax time.

........BUT, even then, the need to actually submit & pay quarterly estimates for 2018 taxes will really depend on your expected 2018 income, even if you do owe $1000 extra for 2017 taxes........and if you don't withdraw any more from the 401k during 2018, then you can ignore those quarterly estimates as long as you have enough withholding on your normal yearly income to more than cover your expected 2018 tax bill when you file in 2019.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
Opus 17
Level 15

Used 401k money (not loan) to help buy our house. We withheld 10% penalty + 30% for taxes. Will I have to pay est. tax pmts 2018 if pd enough in 2017?

It sounds like you already had enough withheld unless your tax situation is very unusual.
*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
SteamTrain
Level 15

Used 401k money (not loan) to help buy our house. We withheld 10% penalty + 30% for taxes. Will I have to pay est. tax pmts 2018 if pd enough in 2017?

....(note...I had to edit a couple spots in may answer where I didn't hit enough zero's.....$1000 instead of $100)
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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