[seaton]

Here are a lot of details.

I make around 80000 a year. I have 4 kids and the wife. I expect to have around 4k in charitable contributions, and about 2000 carry over long term stock loss.

I am planning on taking 106k out of my 401k in an early distribution. I know that I will be taxed for it, and that I will get hit with the 10% penalty.

I don't want to hear the don't do it speech, I know all about that part.

What I want to know is how likely is it that this will cause me to get hit by AMT. It all seems rather complicated figuring that out. Using last years return I pretended to enter it in and as far as I could tell my taxes went way up, but it did not trigger AMT.

Any help would be appreciated.
I am using it for a down payment on a house. My thinking pull out 106k. They give me around 84k after holding 20% in advance for taxes. I put down 60k on the house and keep the rest for tax time. Yes I know I am taking a big hit, but you get taxed when you eventually withdrawl from the 401k. I am taking the 10% hit now. I know the idea is that you will be in a lower tax bracket at retirement, but that is not likely the case for me. Add the interest I will be paying on the loan if I did not pay the 60k down and I am willing to take the hit now.

I am most interested in knowing will AMT likely smack me because of this ?

Thanks in Advance

[seaton]

One additional piece of info.

The 401k I am withdrawing from is a company that I recently quit a month ago. Switching jobs IE why I am buying a new house.

[seaton]

One other piece of Info, I am in Utah if that matters tax wise.

[MukatA]

When you leave your job, your old employer may send you a check for your 401(k) and withhold 20% tax. You have 60 days to roll over the entire distribution (including 20% withholding tax) to your current employer's 401(k) plan without at tax implications. However, if the amount rolled over was the net amount, that is, the amount of the distribution less the tax withheld, then the 20% withholding amount not rolled over is included in gross taxable income and may be subject to a 10 percent additional tax on early distribution.

[AtlantaTaxExpert]

A competent tax professional should be able to model your scenario to tell you what the exact tax liability will be. Most charge a small fee for the work.

If you wish, you can email me at [email protected] with the specifics. I will quote you my fee for the service via email.

[Five Rings]

I can see no AMT consequences