Question

How much can I take from my 401 without increasing my tax rate.

Forum|Forum|5 years ago
February 16, 2021
1 reply
0 views

My current effective tax rate is 3.95%. How much can I move from my ira without raising tax rate

TurboTax Premier Online

The taxability of distributions from your 401(k) plan may have an early withdrawal penalty if taken before you turn 59 1/2. However, many exceptions could apply. The penalty is waived if the distribution was due to the coronavirus.

How much you can take out also depends on whether you take it as a true distribution, or if funds are withdrawn as a loan to yourself. Loans have no tax consequence.

For more information see: Can I make a hardship withdrawal from my 401(k)?

For your tax bracket, see: Tax Bracket Calculator - 2020-2021 Tax Brackets