topic Re: ESOP withdrawal in Tax law changes

ESOP withdrawal

MarssD — Tue, 10 Mar 2026 06:01:55 GMT

I'm eligible to withdraw my ESOP this year but am not of retirement age. I discussed taxes last year with a consulting company if I had withdrawn it last year and it of course would've put me in a higher tax bracket. I left the money there another year. Does this new inflation law help with that or reduce the amount of taxes I'd pay taking it out this year? Otherwise I'll roll it over to a Roth IRA so all my eggs aren't in one basket.

Re: ESOP withdrawal

VincentL — Wed, 28 Sep 2022 16:26:44 GMT

This depends on your specific tax circumstances. Review the following:

Projected 2023 Tax Rate Bracket Income Ranges

10% – $0 to $22,000.
12% – $22,000 to $89,450.
22% – $89,450 to $190,750.
24% – $190,750 to $364,200.
32% – $364,200 to $462,500.
35% – $462,500 to $693,750.
37% – $693,750 or more

The Act created a new nondeductible one percent excise tax on stock repurchases of publicly traded corporations.

I did not find a change specific ESOP in the law.

Re: ESOP withdrawal

MarssD — Wed, 28 Sep 2022 16:31:01 GMT

I forgot to ask, is there also the 10% withdrawal penalty for taking it now versus retirement age? Or is that different than 401k?