seaton
Oct 6, 2009, 09:08 PM
Here are a lot of details.
I make around 80000 a year. I have 4 kids and the wife. I expect to have around 4k in charitable contributions, and about 2000 carry over long term stock loss.
I am planning on taking 106k out of my 401k in an early distribution. I know that I will be taxed for it, and that I will get hit with the 10% penalty.
I don't want to hear the don't do it speech, I know all about that part.
What I want to know is how likely is it that this will cause me to get hit by AMT. It all seems rather complicated figuring that out. Using last years return I pretended to enter it in and as far as I could tell my taxes went way up, but it did not trigger AMT.
Any help would be appreciated.
I am using it for a down payment on a house. My thinking pull out 106k. They give me around 84k after holding 20% in advance for taxes. I put down 60k on the house and keep the rest for tax time. Yes I know I am taking a big hit, but you get taxed when you eventually withdrawl from the 401k. I am taking the 10% hit now. I know the idea is that you will be in a lower tax bracket at retirement, but that is not likely the case for me. Add the interest I will be paying on the loan if I did not pay the 60k down and I am willing to take the hit now.
I am most interested in knowing will AMT likely smack me because of this ?
Thanks in Advance
I make around 80000 a year. I have 4 kids and the wife. I expect to have around 4k in charitable contributions, and about 2000 carry over long term stock loss.
I am planning on taking 106k out of my 401k in an early distribution. I know that I will be taxed for it, and that I will get hit with the 10% penalty.
I don't want to hear the don't do it speech, I know all about that part.
What I want to know is how likely is it that this will cause me to get hit by AMT. It all seems rather complicated figuring that out. Using last years return I pretended to enter it in and as far as I could tell my taxes went way up, but it did not trigger AMT.
Any help would be appreciated.
I am using it for a down payment on a house. My thinking pull out 106k. They give me around 84k after holding 20% in advance for taxes. I put down 60k on the house and keep the rest for tax time. Yes I know I am taking a big hit, but you get taxed when you eventually withdrawl from the 401k. I am taking the 10% hit now. I know the idea is that you will be in a lower tax bracket at retirement, but that is not likely the case for me. Add the interest I will be paying on the loan if I did not pay the 60k down and I am willing to take the hit now.
I am most interested in knowing will AMT likely smack me because of this ?
Thanks in Advance