ScottGem
Jan 11, 2011, 09:38 AM
The proceeds of a 401(k) withdrawal are added to your taxable income for the year. So how taxes you owe depends on your total taxable income. You will still owe the 10% federal penalty.
AtlantaTaxExpert
Jan 11, 2011, 09:47 AM
Colorado will tax the distribtuion as ordinary income, with NO penalty like the federal return. As ScottGem said, the percentage depends on your overall income.