Question

question about your 401k

Forum|Forum|6 years ago
April 28, 2020
2 replies
0 views

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

TurboTax Home & Biz Windows

macuser_22

Employee

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.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

S

ssunshine007

I do not have a 401K

macuser_22

Employee

@ssunshine007 wrote:

I do not have a 401K

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

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**