question about your 401k

[Jnino94]

so I was curious if anyone new if you take money out of your retirement for a home loan when you file taxes do you get penalized at the end of the year and do you have to pay so much of a percentage or do you have to pay at once or can you do payments and help would be appreciated 

[macuser_22]

There is a mandatory 20% tax withholding on 401(k) distributions that will help offset the tax when you file.    The amount of distribution will be taxable as ordinary income and if yiu are under age 50 1/2 the  there is an additional 10% penalty.

If you anticipate that you will be in the 24% tax bracket then the tax will probably be about 34% if under 59 1/2.

You can request that more be withheld, or you can pay the estimated tax in estimated tax payments (1040ES) during the year. 

[ssunshine007]

I do not have a 401K

[macuser_22]

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@ssunshine007 wrote:

I do not have a 401K

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Why are you posting to a thread that is titled "Question about your 401(k)" then?