Withdrawal from 401K

[Ed Roxas]

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

[DoninGA]

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  There should be federal taxes withheld from the withdrawal which would be 20% of the amount withdrawn.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]

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  You should only be subject to income tax alone on the amount withdrawn.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.

@Ed Roxas