Tax Liabilities for SEP withdrawal.to avoid bankruptcy

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mat1dew

Mar 26, 2008, 09:45 AM

I have 85 thousand in a sep account..I have bills totalling about 40 thousand ...in a realesatate investment....how much money do i lose out on ..if i withdraw it all...I am only 50....I really don't care that much..about losing some of it..but must generate..about 40 to 50 thousand for immediate cash flow...so how much do i lose ???

AtlantaTaxExpert

May 2, 2008, 01:26 PM

For $85K, a total withdrawal will generate AT LEAST a 33% tax liability, and probably more like 40%, depending on other income amounts.