Ask Experts Questions for FREE Help !
Ask
    kschell100's Avatar
    kschell100 Posts: 1, Reputation: 1
    New Member
     
    #1

    Jun 1, 2011, 02:41 PM
    What is the Illinois state tax percentage for a 401k hardship distribution?
    I am taking a $10,000 hardship loan and want to have them take out the taxes up front so I don't owe anything at tax time. What should I have them take for federal and state (Illinois)?

    Thanks
    ebaines's Avatar
    ebaines Posts: 12,130, Reputation: 1307
    Expert
     
    #2

    Jun 1, 2011, 02:56 PM

    The IL income tax rate is a flat 5%. Are you sure the administrator is willing to be told by you how much to withhold for taxes? In most cases when you take a withdrawal they will automatically withhold 20% for federal taxes and nothing for state taxes. Whether 20% is sufficient to cover federal income taxes plus the 10% early withdrawal penalty is impossible to say - it depends on your tax bracket.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

401k hardship withdrawal tax ? [ 2 Answers ]

I am taking a 401k hardship withdrawal for 55,000 how do they tax me and out of that , how much can I expect to get? Do they take all of this upfront?

Is there a my state penalty for 401k early distribution? [ 1 Answers ]

Do you have to pay Michigan state taxes on early 401k withdrawal?

Which state do I need to report a 401k distribution [ 1 Answers ]

I earned the income in my 401k while living in nj but I moved to California and that is where the distribution was paid and the taxes were withheld on a 1099. Which state must I report this income to.

State Income Tax due on 401K Hardship Withdrawal? [ 1 Answers ]

I made a hardship withdrawal from my 401K in 2007 and also held money back for federal taxes on it. I work in NY and live in NJ (100% of my income is from NY). My question is to which state is the amount of my withdrawal taxable to? In other words, which state do I have to pay income taxes...

401k distribution ? And state tax [ 4 Answers ]

How much would you suggest that I withhold for state taxes on a 12,400 distribution? I live in New York and would prefer not to get dinged at the end of the year. It can be either a percentage or dollar amount. Thank you for any suggestions!


View more questions Search