0
401k is fica taxable only..
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
Are 401K contributions tax deductible?
401k's are not tax-deductible in the normal sense of the word. However, since normal 401k contributions are made with pre-tax funds, taxable income is reduced. As taxable income is reduced, tax is then reduced as well.
Will drawing on your 401k affect your unemployment in Washington state?
yes. once you withdraw the money it is taxable as income.
What are the advantages of Prudential 401k investment plan?
The advantages of the Prudential 401k investment plans are simplistic, the investment is tax deferred, they can reduce your taxable income by being allocated pre paid tax dollars.
In a 401k when you eventually pay taxes which taxes do you pay?
Distributions from your 401K after you reach your retirement age the taxable amount will be subject to federal income tax at your marginal tax rate and may be subject to some state income tax.
Can you deduct losses on your 401k on yearly tax return?
No these amounts are only paper losses and you never have reported the deferred compensation amounts on your 1040 Federal income tax return as taxable income and never paid any income taxes on the amount so you do not have any cost basis in the 401K plan YET and these transactions losses or gains are only taking place inside of the 401K plan each year. This is the same thing that happens in the year that you have gains inside of your 401K plan you do NOT report the amount of gains as taxable income on your income tax return either because the transaction are taking place INSIDE of the 401K plan.
How do you cash in 401k?
If you are still employed by the company that sponsors your 401k plan then you will not be eligible to cash out of the plan. Instead, you can see if your plan offers either a 401k plan loan, or a 401k plan hardship withdrawal (not all 401k plans allow hardship withdrawals so you need to ask your plan administrator if your plan has this feature.)If you are no longer employed by the company that sponsors your 401k plan, then you are eligible to get your money out of your 401k plan. You can cash out of the plan, or rollover your 401k plan balance to an IRA. If you choose to rollover your 401k plan instead of cashing out, then you will not have to pay taxes or penalty taxes: rollovers to IRAs are not taxable transactions if you do them the right way.
What will happen if I decide to withdraw money out of my 401K account before I reach retirement age?
You will get nailed with at least a 10% penalty and have to claim it as taxable income besides, unless you can do it on a 401k loan wich you repay to yourself at a set interest rate. (a much better idea)
What are the rules of a 401k withdrawal?
Early withdrawal of retirement money from a 401k can result in penalty fees and the funds are taxable, at the time of withdrawal, as ordinary income. If you have not reached the age of 59 1/2 when you decide to withdraw your money your penalty payment will be 10% of the amount withdrawn.
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.
What are some tax advantages of using a 401K?
The deferred contribution amounts will NOT be included in your the box 1 of your W-2 form as taxable income for the year that you do this. The distributions amounts from the deferred compensation plan 401K will be subject to income in the future when you retirement at your normal retirement age and be subject to the federal income tax at your marginal tax rate. IF you do take distributions from the 401K plan when you are under the age of 59 1/2 the taxable amount of the distribution will also be subject to the 10% early withdrawal penalty unless one of the exemption to the early withdrawal penalty is met.
Can you take your 401k and invest it in your home tax free?
NO. The taxable amount of any distributions from your 401K will be added to all of your worldwide gross income and be subject to the federal income tax at your marginal tax rate. It will not make any difference what you use the funds for because the contributions amount to the 401K were NEVER subject to income tax in the year that they were made as a part of your deferred compensation plan.
What does tfb on pay stub from captain d mean?
TFB on a paystub means "taxable fringe benefit". It applies to pay other than your salary and includes your health insurance, 401k, etc.
