What would you like to do?

What is the tax rate on a 401k withdrawn?

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 .

The Federal ordinary income tax rate on the 401k funds withdrawn depend on the tax rate of the individual drawing the funds.

Early withdrawals (distributions before the age of 59.5) are generally struck with an additional 10% penalty on top of the federal and state income taxes due by the individual.
2 people found this useful
Thanks for the feedback!

Are earnings in a Roth IRA taxed when they are withdrawn?

Answer . Under current law - contributions taxed when contributed, not taxed when withdrawn.. Earnings or investment gain (which remember to consider in any analysis wou

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

Is 401k taken out of your payroll before or after taxes?

You can elect for either under most plans...butit is virtually always done as a contribution BEFORE tax, and not included in yoiur current earnings. That is in fact one of the

How much are taxes due on cashed in 401k?

If you are under 59 1/2, 10% will be withheld. Even in cases of hardship, this money is best left where it is for retirement, particularly if you are young. It should be th

Do you pay taxes on 401k?

Generally, your contributions aren't taxed (put in before taxes ), and your withdrawals are taxed.

How are contributions to qualified plans taxes when withdrawn?

It depends on the type of plan and who contributed (employer, employee) and how they contributed (before-tax, after-tax). For example, the rules for a Roth 401k are complet

What is the maximum after- tax 401k contribution?

The 415c limit is $49,000. This includes all pretax, aftertax, roth, catch up contributions, and employer match. There's not a maximum specifically for aftertax.

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

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 i

What the percent of 401k tax when you retire?

The standard withholding on all withdrawals for 401k plans is 20%. There are two exlcusions to this and that is Required Minimum Distributions and Hardship Withdrawals. In add

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

Is obama planning to tax all 401k?

While this is a popular prediction on Republican websites, the President has not made any such claim, nor said it was in his plans. He does want to raise taxes slightly on the