Withdrawal from 401K

Forum|Forum|2 years ago
April 24, 2024
2 replies
22 views

How will it affect my tax filing next year if I withdraw from my 401k? I am 64 years old and still working.

Ask the Experts - Refund II - April 2024

DoninGA

Level 15

A withdrawal from a 401(k) is reported on your tax return as taxable income. There should be federal taxes withheld from the withdrawal which would be 20% of the amount withdrawn. You would receive a Form 1099-R in January of 2025 for a withdrawal in 2024. The Form 1099-R is entered on your federal tax return.

AnnetteB6

Level 15

If you take a withdrawal from your 401k, then that will increase your income because the withdrawal will be taxable. However, due to your age being over 59 1/2, you should not incur any additional penalty for early withdrawal. You should only be subject to income tax alone on the amount withdrawn.

Be aware that if you do take a withdrawal, Federal and state taxes can be or will be withheld to help offset the increase in income tax.

@Ed11_2 Roxas

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