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Will the government tax a withdrawal of after tax money from 401?
Wiki User
∙ 15y ago
No.
Wiki User
∙ 15y ago
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Retirement Plan Withdrawal?
Retirement Plan Withdrawal Withdrawing money from a qualified retirement plan, such as a Traditional IRA, 401(k) or 403(b) plan, among others, can create a sizable tax obligation. If you are under 59 _ you may also be subject to a 10% early withdrawal penalty. Use this calculator to see what your net withdrawal would be after taxes and penalties are taken into account.
How do I start a 401(k)?
You can start a 401(k) through any employer that offers a 401(k) plan. This give you the ability to save pre tax money.
Who gets the tax money?
The government collects the tax money.
What's the difference between Roth and a 401K?
The difference between a Roth 401k and a regular 401k is that the Roth 401K is a after-tax contribution and the regular 401K is a pre-tax contribution. You pay taxes on the Roth 401K now in order to avoid taxes at withdrawal. The regular 401 is a tax credit for the year deposited with taxes paid at the time of withdrawal.
What do we use tax for?
Taxes are used when ever the government spends money. Anything that was government-funded used tax money.
What government receives money from the national government?
Tax
Roth 401(k) vs. Traditional 401(k) and your Paycheck?
Roth 401(k) vs. Traditional 401(k) and your Paycheck A 401(k) can be an effective retirement tool. As of January 2006, there is a new type of 401(k) contribution. Roth 401(k) contributions allow you to contribute to your 401(k) account on an after-tax basis and pay no taxes on qualifying distributions when the money is withdrawn. For some investors this could prove to be a better option than the Traditional 401(k) contributions, where deposits are made on a pre-tax basis, but are subject to taxes when the money is withdrawn. Use this calculator to help determine the option that could work for you and how it might affect your paycheck.
Roth vs Traditional 401(k)<!--403b-->?
Roth vs Traditional 401(k)? A 401(k) contribution can be an effective retirement tool. As of January 2006, there is a new type of 401(k) - the Roth 401(k). The Roth 401(k) allows you to contribute to your 401(k) account on an after-tax basis - and pay no taxes on qualifying distributions when the money is withdrawn. For some investors, this could prove to be a better option than contributing on a pre-tax basis, where deposits are subject to taxes when the money is withdrawn. Use this calculator to help determine the best option for your retirement.
What should you do if you ended up paying more than allowed amount in 401K?
If you paid more than the allowed amount on your 401(k), contact your employer 401(k) rep about the amount that you have overpaid. You should receive a check from the 401(k) company or your plan administrator. This amount is to be reported on the Tax Form 1040, line 7. Since this money went into your 401(k) untaxed, it now has to be taxed. Report this money in the tax year you receive it.
Where does the government get the money from for the public fACILITIES?
the government get money for public facilities fromthe various taxes like incometax,sales tax,housetax,water tax,road tax..........
When claiming a withdrawl from your 401k what is the percent of income tax you have to pay?
If you withdraw money from your 401k plan, it will be taxed just like any other income. So, the amount that you will pay will depend on what tax bracket the withdrawal pushes you into. If you do not meet one of the exceptions, you will also be subject to a 10% early withdrawal penalty. This penalty is charged by the IRS and it is reported on your tax return for the year of the withdrawal. So, if you are in a 25% tax bracket and you are subject to the early withdrawal penalty, you are going to pay a total of 35% of the withdrawal in Federal income tax. If you live in a State that has state income tax, remember that you will need to pay that too.
401(k) Tax Benefits?
A 401(k) is a retirement savings plan that allows an employee to contribute a portion of his cash wages to the plan on a pre-tax basis. These deferred wages are not subject to tax withholding.Click here to fill out the 401(k) Tax Benefitsform
