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I am getting a divorce and I live in Missouri. My portion of my spouses 401k will be 59k. My annual income is $15000. What amount of taxes will I be paying on the 59k?

Forum|Forum|6 years ago
June 7, 2019
4 replies
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What tax bracket will I be in?

Best answer by fanfare

Work with your attorney to ensure your portion is transferred to your trustee in the proper manner.
If done correctly, there will be no tax.

K

kimberlymnewlandAuthor

Does the figure you gave me include the state tax? Of not do I figure the tax on the $$61,800? Thanks

Critter

Employee

So you are not going to roll it into an IRA ? If you do that you don't pay taxes now. If you do you can take smaller distributions over more than one tax year to reduce your tax liability.

But 15K + 59K = 74K - 12,200 = 61,800 taxable = 9536 in taxes.

Critter

Employee

No ...just federal.

fanfareAnswer

Employee

Work with your attorney to ensure your portion is transferred to your trustee in the proper manner.
If done correctly, there will be no tax.

K

kimberlymnewlandAuthor

Why do I need a trustee? The payment will go directly to me. Should I need a trustee how would I get one and can it be just anyone? Thanks for your help.