Generally, your contributions aren't taxed (put in before taxes), and your withdrawals are taxed.
No, this is the offset of not having to pay taxes on 401K profits. Save
when you withdraw the money, yes.
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.
did you cash in the 401k? taxes would already be taken out if so. but you do have to do it again when tax season comes about. they won't make you pay more but you have to show it
Distributions from a 401k are taxed like any other income. So, it depends on how much you are receiving each year. If you receive $30,000 a year from your 401k, you will be taxed the same as any person who makes $30,000 per year.
No, this is the offset of not having to pay taxes on 401K profits. Save
hi
Yes, you will pay taxes on withdrawals from your 401(k) after age 62. The withdrawals are considered ordinary income and will be subject to income tax.
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.
when you withdraw the money, yes.
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.
did you cash in the 401k? taxes would already be taken out if so. but you do have to do it again when tax season comes about. they won't make you pay more but you have to show it
Depends on your plan but you can opt out of your 401K at any time but you will pay taxes on the balance then pay a 10% penalty on the pre-tax amount. For example, if your balance is $10K, you will pay $1K penalty, then pay taxes on $10K which might be as high as $3000. So you end up with $6000 and probably won't be able to participate in the 401K plan for another year.
Not sure what you are asking, but generally you cannot simply convert your 401k to a Roth 401k, unless this is something your current company offers. If it is offered, then you would have to pay taxes on the amount that you rolled into a roth 401k, but would never pay any other tax on the gains or distributions.
You will never be able to withdraw the deferred compensation amounts from the 401K with out having to pay the federal and state income taxes that will be due when you take any distribution amounts from your 401K plan.
Under a non-profit organization are allow to pay the president a salary and 401k plan and should taxes be taken out of th salary
If you pull out of your 401K and you are under 59 1/2, you will have to pay income taxes and a 10% penalty. The only exemption for this is if you are legally disabled.