phiregurl
Feb 14, 2009, 07:43 PM
I borrowed $2,000 from my 401K, paid penalty $165. I made $34,614.47 last year and federal tax withheld was $4,256.86. How much will I owe, or will I get a refund? I live in MA, single, no kids, and not a homeowner.
Thank you
ebaines
Feb 16, 2009, 12:37 PM
First, you said you "borrowed" $2K from your 401(k), but if that's the case then there is no penalty, so I don't understand what the $165 is all about, On the other hand, if you actually took a withdrawal of $2000, they should have withheld 20% of that, or $400, not as a penalty but as withhold for income tax. So please clarify - was the $2k that you took from your 401(k) a withdrawal or was it a loan?
As for the amount of tax you will owe: based on $34,614 income, one exemption (for yourself) and standard deduction, your tax bill is about $3450, so you should be getting a refund. You don't mention how much was withheld from MA state income tax.