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logandavidson81-
January 30, 2024
Question

Should I owe 353.00 more to federal taxes for early withdrawal of 401K because they took $502.58 when i withdrew the money?

  • January 30, 2024
  • 2 replies
  • 0 views
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2 replies

M
mglauner
January 30, 2024

When you withdraw funds from your 401K, the Federal Tax they took was the 10% or 20% that is required to be withheld on any 401K withdrawal by your employer.

 

The additional tax you owe is a Penalty for Early Withdrawal.

 

Be sure to check to see if you qualify for an Exception to Early Withdrawal Penalty.

 

SteamTrain
SteamTrain
Employee
January 31, 2024

Or..it is also possible the amount they withheld wasn't enough to cover all the taxes you owed for it...based on your marginal tax rate for ALL your yearly income.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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