I have a 401K and am 60 years old. How will that effect my taxes if I take the entire amount out this year?

[Katie-P]

Hi stevejordan-21,

Thanks for participating in today's event!

Your taxes will go up if you take the entire distribution from your 401k this year (assuming that this is not a Roth 401k). How much will your taxes go up? It depends!

I recommend that you use our Taxcaster tool to get an idea of how the distribution would impact your 2023 tax return. Note that the calculator is still pointed to the 2022 tax year, but by early to mid-November, it should be pointed to the 2023 tax year. 

Happy tax planning!

Katie