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    ATauro's Avatar
    ATauro Posts: 1, Reputation: 1
    New Member
    		  
    #1

    May 4, 2008, 04:38 PM
    401K Withdrawal
    I am already 59 1/2 but not yet retired and can withdraw from my 401K without the 10% penalty. I do know that my plan automatically retains the 20% (plus some) to give to Uncle Sam and state tax, as well. I would like to withdraw 40K as cash (no rollover to any IRA) because we want to donate to our church and maybe start a home business and spend some on home repairs, etc.

    My question is, because I still have a very nice income, do you think I will end up paying additional taxes (even way more than that 20% plus) on this 40K, when it comes to tax time next April 15, 2009?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    May 4, 2008, 04:50 PM
    I suggest you contact your tax preparer. If you use tax software, you can try doing a What If and add the 40K to your taxable income and see what the additional tax will be.
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