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View Full Version : Took my retirement plan money early


rudel007
Dec 11, 2010, 12:42 PM
I got unemployed last August 2010... and took my retirement plan money of $2,300.00... federal got $920.00 for taxes but state did not get any... I earned like only $20,000 and my wife only $9,000 for this year(filing joint).Also I got early withdrawal from my 401k of $1,500.00 and federal got $600 and state got $300. I want to know if I will get a refund next year when I file?

MukatA
Dec 13, 2010, 06:53 AM
The withdrawal will be treated as your ordinary income. Also for early withdrawal you will pay 10% penalty.

ebaines
Dec 13, 2010, 07:18 AM
Your total income = $20000 (your wages) + $9000 (wife's salary) + 2300 (retirement pay) + 1500 (401k withdrawal) = $32.8K. If you file as married filing jointly with 2 exemptions and take the standard deduction, your total tax bill is likely to be about $1400, plus $150 for the early withdrawal penalty = $1550. You didn't tell us how much federal tax was withheld from your wages, but you should be able to do the math from here.

As for state income taxes - since nothing was withheld from either your retirement pay or 401(k) withdrawal, you may owe something to the state.