topic 401k withdrawl in Other financial discussions

401k withdrawl

jbylock — Wed, 10 Jul 2019 13:22:08 GMT

i am thinking of leaving my job and withdrawing my 401k money. i don't have state income tax. i know is a penalty fee for early withdrawl what do i owe in taxes on 72,000 dollars? can you assist me with that?

Re: 401k withdrawl

NCperson — Wed, 10 Jul 2019 15:15:17 GMT

are you single or married? (affects which tax tables you'll need to use)

are you over or under 59 1/2 years old? (if under, there is going to be a 10% tax penalty; if over, no penalty)

Re: 401k withdrawl

macuser_22 — Wed, 10 Jul 2019 15:20:07 GMT

If you don't need the money right away, you can roll it into an Traditional IRA tax free otherwise a 401(k) distribution is taxed as ordinary income at whatever your marginal tax rate is plus an additional 10% early distributions penalty if you are under age 59 1/2 (or age 55 at the time of separation from service).

For example, if you are in the 25% tax bracket and subject to the penalty then a 35% tax would be reasonable.