If you do a 401k rollover properly, there are no tax implications associated with the transfer. To do so, you will need to rollover your funds directly into an IRA from your old 401k. As a word of caution, if this is not done properly, then you could possibly be taxed at your ordinary income tax rate plus 10% on the amount.
You can cash out your 401k, but you could possibly face severe tax implications. When you cash out a 401k plan, you usually pay ordinary income tax on the amount, plus a 10% penalty. Sometimes this can result in a charge of over 40%!
Information on a Roth 401k may first be found on the sites of providers, such as Fidelity, Vanguard, and TD Ameritrade. The IRS website and phone line can also provide more information on the tax implications of a 401k.
If you cash out your 401k plan you have to pay a penalty as well as taxes. However if you rollover your 401k into an Individual Retirement Account (IRA) then it still continues as a retirement plan. You may also consult a tax professional or financial planner.
The amount does not matter, you will owe all income taxes due plus a 10% penalty if you are not 59 1/2 years old.
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.
A good tax consequence of a 401k retirement plan is that you can literally save money as the funds that are ususally tax-free. If you withdraw from your 401k plan, there is usually a large penalty.
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.
A 401k and a IRA are different. A 401k is a employer sponsored plan while a IRA is not. A Roth grows tax free, while a 401k is taxed when you withdrawl the funds.
how others will about your tax matters i am not an tax officer to know it
One website where you can find some of the pros and cons for the 401k calculator tax is: http://www.401kplanning.org/calculators-tools/401k-savings-calculator/
A 401k rollover is an option that comes with very few tax consequences. If you setup the rollover incorrectly you could face tax liability that is unexpected.