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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 completely different than the rules for a traditional 401k.
In any case, if any part of the distribution (withdrawal) is taxable, it is taxed as ordinary income. But there are exceptions even there. For example, there are exceptions for Net Unrealized Appreciation (NUA) of employer stock distributed from a plan and there are separate rules for lump sum distributions taken by employees born prior to Jan 2, 1936.
The tax rules concerning retirement plans in the US are a horrible complicated patchwork maze. I don't understand how the average worker who does not devote his life to studying taxes is supposed to understand them.
Wiki User
∙ 15y ago
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What do you call the type in which one will pay taxes on until the money is withdrawn?
The type of pension in which one will pay taxes on until the money is withdrawn is a 401(k). In some cases, an employer may match the contributions made to the plan.
What is the difference between deductions and contributions?
A deduction on your tax return can be your property taxes or mortgage interest. A contribution is money or property you've donated to a qualified charitable organization.
Do You pay taxes on Roth Contributions?
no
In a Traditional IRA when does a person pay taxes on the money in the account?
Taxes do not become due until money is spent from the account (withdrawn)
How do you claim a non related dependent on your taxes?
If they aren't a qualified child or a qualified relative, as defined, you can't claim them.
Are taxes donations?
Taxes are certainly not a donation. Taxes are compulsory payments while donations are voluntary contributions to a tax qualified non-profit organization.
What do you call the type in which one will pay taxes on until the money is withdrawn?
The type of pension in which one will pay taxes on until the money is withdrawn is a 401(k). In some cases, an employer may match the contributions made to the plan.
Why did the British repeal taxes?
people were angered by taxes and therefore they were withdrawn.
What is the difference between deductions and contributions?
A deduction on your tax return can be your property taxes or mortgage interest. A contribution is money or property you've donated to a qualified charitable organization.
Do You pay taxes on Roth Contributions?
no
457 Savings Calculator?
457 Savings Calculator A 457 can be one of your best tools for creating a secure retirement. It provides you with two important advantages. First, all contributions and earnings to your 457 are tax-deferred. You only pay taxes on contributions and earnings when the money is withdrawn. Second, many employers provide matching contributions to your 457 account which can range from 0% to 100% of your contributions. The combined result is a retirement savings plan you can not afford to pass up.
When in the traditional IRA does a person pay taxes on money in the account?
Taxes do not become due until money is spent from the account (withdrawn)
In a Traditional IRA when does a person pay taxes on the money in the account?
Taxes do not become due until money is spent from the account (withdrawn)
What economic contributions were made by all immigrants?
taxes
How do you claim a non related dependent on your taxes?
If they aren't a qualified child or a qualified relative, as defined, you can't claim them.
Do you pay taxes on 401k?
Generally, your contributions aren't taxed (put in before taxes), and your withdrawals are taxed.
Can you get a tax refund if didn't pay taxes but did make contributions?
no
