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    alpike's Avatar
    alpike Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jan 10, 2007, 06:28 AM
    Cash out 401k
    If you cash in a 401K that was only about $3,500 how will that affect your income tax return the following year?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Jan 10, 2007, 06:42 AM
    The $3500 will be added to your taxable income for the year. Better to roll the money into an IRA.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Jan 11, 2007, 06:07 PM
    Agree with Scott Gem.

    You will pay anywhere from 28 - 39%, depending on the state you live in.
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