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    krissy74's Avatar
    krissy74 Posts: 6, Reputation: 1
    New Member
    		  
    #1

    Feb 5, 2007, 02:50 PM
    Paying tax on 401k.
    Hello..
    I just took my money out of my 401k plan. They sent me the whole amount without taking the penalties or taxes. I was wondering if anyone could tell me what forms I need to fill out so I can send the IRS my taxes and penalties. Also, can I wait till next tax season to do this or do I have to do it now.. I took the money in 2007...
    Thanks...
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Feb 5, 2007, 11:40 PM
    While you can, roll the money into a rollover IRA. If you do it before 60 days has expired, no taxes will be due. If you need the money down the road, you can withdraw it from the IRA.

    Avoid this if possible. In addition to normal taxes (state and federal), you will pay a 10% Early Withdrawal Penalty. The total tax can hit 49%.
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