Ask Experts Questions for FREE Help !
Ask
    Munson99's Avatar
    Munson99 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Sep 4, 2007, 11:24 AM
    Early Withdrawl of a Previous Employer 401K
    Can you tell me exactly what taxes are withheld when doing an Early Withdrawl of a 401 K? Also, when tax season comes around will I be taxed again on the total amount withdrawn as additional income or the amount after taxes? Is it true you are double taxed? Or will the initial taxes removed from the check given be the only taxed amount taken from that money?

    I really need to get a straight answer on this topic before I make a decision that will hurt me worse financially in the long run... I am trying to clear up debt now to give our family a clean slate for the future. Any help I can be given would be greatly appreciated!

    Thank you in advance!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Sep 4, 2007, 07:29 PM
    The 20% that is withheld is only a DOWN PAYMENT for the taxes owed. You will pay (and pay ALOT) when you file your return.

    Again, as I have said on numerous occasions, DO NOT DO IT! The tax burden is just too great.
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 early withdrawal [ 5 Answers ]

We withdrew in August 2006 my wife's 401k to pay off bills. She has been off work for two years. A Social Security Judge in March 2007 declared her disabled and unable to work. We will be receieving a settlement from Social Security. We were told that since she was disabled there would not be a...

401k early withdrawal [ 5 Answers ]

I was in a car accident last march and have been off work since. I received a letter stating I am terminated because of being off more than a year. I want to know in Kentucky what taxes and penalties I have to pay to get my 401k out if any :p

Early 401k withdrawal [ 2 Answers ]

Last year (2006) I withdrew all of my 401 k from my former employer. How do I account for this in filing my taxes and how does the 10% early withdrawel get factored in. The company already withheld 20%

401K Early withdrawal [ 5 Answers ]

My wife will not listen to me! She feels that we need the money from a previous employers 401K plan to help with paying our bills since she doesn't make much money anymore. She only has about $8,000.00 in there and according to the way I see it, she will need to have 20% fed. Tax withheld, and 8%...

401k early withdrawal [ 4 Answers ]

The plant that I currently work at is closing down. I have a 401(k) that currently has $16,000 in it. I am 48 years old. What kind of penalties am I looking at if I pull all the money out when the plant closes? Approximately how much in taxes will I be paying at the end of the year? I have made...

View more questions Search