Question

401k distribution and how much i will owe in my taxes

Forum|Forum|7 years ago
June 1, 2019
1 reply
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I took a early distribution out on my 401k of 5000 and the fed taxes taken out where 1250. How much will i be looking at, to have to pay back when i do my taxes?

TurboTax Deluxe Online

Carl11_2

Employee

You can't file until you get the 2016 1099-R showing that distribution. (Assuming you took the distribution in 2016). At a minimum, you will pay a 10% penalty. Additionally, you will pay tax on the withdrawal based on your overall tax bracket determined by your total income for the year, which includes the distribution. On average, most people will pay 35% or more total on the withdrawal. There's the 10% penalty and if you're in the 25% tax bracket, that makes it 35% total of the distribution, that you will pay in penalties and taxes.