I'd like to withdraw approx $30,000.00 from my 401K to place a down payment on a new home, which will be our primary residence. What will the penalty & tax be? Is there a way to defer any of it by rolling it into an IRA first? Thank you, Carolyn B.
I can give you a rough idea.lets use 10,000.00 as the withdraw number.I assume your under 59.5 yrs. Of age.most 401k withdraws are done over the phone and some by mail depending on which financial co. Your employer has chosen.when withdrawing 20% of the 10 grand for fed.tax will automatically be withheld.you can also opt to have them hold 25-30% fed tax to ease the end of the year tax bill.state tax is optional in most states but not all.last but not least 10%penalty. So lets say you go the mandatory fed tax of 20% no state tax and 10%penalty on 10 grand. Your check will be:10,000.00-( fed tax 20%) 2,000.00-(penalty) 1,000.00 =7,000.00 amount of check.which leaves roughly 1,700.00-1,800.00 of taxes due for 10,000.00 loan. hope this helps live long and prosper!!!
I will earn 130k this year thru severance pay, I cashed my 401k in and paid 20% taxes on 218k will my severance pay and my 401k pay be taxed separately or will they be added together for total income and a much higher taxes????
I drew out money from my 401K after losing my job. I drew out $61,000. I paid 20% Federal tax, but no Ga. Tax. I wonder if I can pay half the early withdrawal penalty this year and half the last year. The same with the Ga. Tax. Can I pay half this year and half next year.
