taxes on 401k withdrawal?
Asked by: Jesica Hogan
I know, its not a good idea and you should try to do everything but take a withdrawal from you 401k. I have no other option at this time. This housing market has left me in a bad spot and I need to make a withdrawl from my plan. I need to clear about 15k. I have calculated this would mean I need to take out about 23k. I know there is a 10 percent early withdrawal fee, plus an auto 20% withholding. My question is on the 20 percent. My wife and I will fall under the 25 percent tax bracket. (with or without the 23k). Im assuming at the end of the year, I would need to pay the additional 5% tax on the money since they only kept 20%? Is that how it works? I take it that would be the same as taking the 23k and adding it to our total gross income and then taking 25% of that. It should be about the same correct?
) Im assuming at the end of the year, I will
sorry about the last sentence, I didn’t realize it was at the bottom of the window and it wont let me erase it.
How others found here:
- is there a 20% withholding tax when a withdrawal from a 401K is made
- Federal Withholding 401k Withdrawal
- withholding tax on 401k withdrawal for resident of canada