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What is the state tax % for 401k withdrawal in virginia?

Asked Jan 4, 2010, 03:39 PM — 2 Answers
When taking a early withdrawal off of a 401k plan, what is the % of state tax that needs to be withdrawn? If my 401k total is 10k, federal is 20%, and there a early penalty for 10%, but what is the state %?
When I file my taxs the same year, does the early withdrawal % come out of my tax return?

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ScottGem's Avatar
ScottGem Posts: 58,006, Reputation: 28105
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#2

Jan 4, 2010, 05:28 PM


The distribution is added to your taxable income and taxed as regular income. The 20% federal withholding is just that, withholding. Its applied against your tax liability to determine how much you owe or will get back from the Feds.

The 10% penalty will be paid with your return.
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ebaines Posts: 10,033, Reputation: 5529
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#3

Jan 5, 2010, 08:22 AM
I believe the marginal income tax rate in VA is 5.75% for incomes above $17K, so that's most likely the percentage you would pay. This amount is NOT withheld from your withdrawal - you have to figure the amount and pay it with your state tax return in April. Also, the 10% early withdrawal penalty is typically not withheld either - you pay that with your federal tax return.
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