401k withdrawl

Forum|Forum|6 years ago
July 10, 2019
2 replies
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i am thinking of leaving my job and withdrawing my 401k money. i don't have state income tax. i know is a penalty fee for early withdrawl what do i owe in taxes on 72,000 dollars? can you assist me with that?

TurboTax

NCPERSON1

are you single or married? (affects which tax tables you'll need to use)

are you over or under 59 1/2 years old? (if under, there is going to be a 10% tax penalty; if over, no penalty)

macuser_22

Employee

If you don't need the money right away, you can roll it into an Traditional IRA tax free otherwise a 401(k) distribution is taxed as ordinary income at whatever your marginal tax rate is plus an additional 10% early distributions penalty if you are under age 59 1/2 (or age 55 at the time of separation from service).

For example, if you are in the 25% tax bracket and subject to the penalty then a 35% tax would be reasonable.

**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.**