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View Full Version : Will my 401k be taxed after 62


taxcrazy2013
Jan 8, 2013, 04:31 PM
Will moving to Florida waive taxes after working in California?

fredg
Jan 8, 2013, 05:18 PM
I still have some of my 401K monies in my local bank, and withdraw some each year in Jan. I DO have to pay Federal Tax on the amount withdrawn, because I had the money put into the 401K first, before Federal Tax was paid.
Yes. Moving to FL does not stop the Federal Gov't from getting their share of your 401K. I have a tax person do my taxes. Even though I draw Social Security Retirement and don't have to pay tax on that, I still have to pay Federal Tax on my 401K money withdrawn. For me, it's about 1 and a half percent. I wish you the best. And PLEASE put all the money you can ( or are allowed to) into your 401K now. The earliest retirement age is 62 and a half. You must be 65 before you can enroll in Medicare, which is now $104 a month I have to pay.

AtlantaTaxExpert
Jan 8, 2013, 10:13 PM
I believe that the OP wants to know if California can tax the 401K withdrawal.

The answer is NO. Only the state where are living at the time of the withdrawal can tax that withdrawal. Since Florida has NO state income tax, there will be NO state tax assessment on the withdrawal.

ScottGem
Jan 9, 2013, 04:24 AM
The premise behind 401(k)s is that any taxes due on the income deposited into a plan are deferred until retirement when your tax bracket is lower so the tax bite will be less.

So any distribution from a 401(k) will be taxed based on the tax rates where you live.

Are you making periodic withdrawals or a lump sum or what. You really gave very little info about your situation for us to help.

Aside to fred. If you have money in a local bank it is no longer 401(k) money but an IRA or just a regular account. If it's a regular account, then you dealt with the tax consequences when the money was withdrawn. If its an IRA then its subject to IRA rules, which are similar but not the same.