What would you like to do?

Do you pay taxes on 401k withholdings?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

Do you pay taxes on 401k withholdings?
By withholding I will guess that you mean the amounts that you are contributing to your 401K BEFORE income taxes (deferred compensation amount) that will not be subject to the income taxes during the year and will reduce the amount of your taxable gross wage amount that is reported in box 1 of your W-2 form at the end of the tax year. The deferred contribution amounts will be subject to income tax in future years when you retire and start receiving distribution the taxable distribution amounts from your 401K plan and at that time the taxable amounts will added to all of your other gross worldwide income on your 1040 income tax return and subject to the federal income tax at your marginal tax rate.
1 person found this useful
Thanks for the feedback!

What do you want listeners to get out of your stories?

View Full Interview
If you are paying back your student loan can the government still withhold your income tax return?

If you are paying back your student loan can the government still withhold your income tax return?

In the USA, if you are paying the required minimum monthly payment each month and your loans are not in default, then NO the government can not keep your tax return. If you ar

Why was pay-as-you-go withholding taxes needed in 1943?

Two reasons. Before Pay As You Go (or withholding as we now know  it) at the end of each year every taxpayer had to scrape together  all of the taxes owed. This could be a h

Does cooperative society pay withholding tax?

A Cooperative Society does not pay withholding taxes. Withholding taxes are taxes deducted at source from incomes earned by individuals and corporate bodies that are subject t

Is it best to put money into 401K and pay taxes at earned income rates or pay taxes up front and pay capital gains and dividend rates?

There are a few different ways to answer this question. * First, it matters whether or not your employer matches any of your 401(k) contributions. Ninety percent of employers

What is the difference between withholding taxes and not withholding taxes?

Withholding taxes are taxes that are subtracted from a payment by a third party before you receive the payment. Examples of this are: your employer takes taxes out of your pay

Is it possible to withdraw funds from a tax deferred 401k to pay off a second mortgage?

If you are over 59 1/2 you can withdraw money from your 401k for any reason. If you are under 59 1/2 you can take a loan on the 401k in most cases. Ask your 401k administrator

When do you pay the taxes if you tax out money from a 401k?

You can have some income tax withheld from the distribution amount are you can choose to make some quartely estimated tax payments or you can wait until you file your income t

Do you have to pay taxes on a 401k if you take the money out to reinvest in a home?

Answer   Because the money in your 401(k) has never been subject to income tax, all withdrawals for any reason will be taxed as ordinary income. Furthermore, if you take

Can you borrow money against your 401k if you are in bankruptcy to pay off your taxes?