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    fishinjack's Avatar
    fishinjack Posts: 2, Reputation: 1
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    #1

    Apr 4, 2011, 08:14 AM
    Tax on 401K withdrawals Michigan age 69?
    What Michigan taxes can I expect if I retire and withdraw my 401 K @ age 69 in 2011?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Apr 4, 2011, 01:20 PM

    1. Federal taxes - the tax rate depends on your total taxable income.

    2. State income taxes - assuming the distribution carries a "reason code" of 7 ("normal distribution") on the 1099-R then you can exclude the first $90,240 form MI income tax if filing as Married Filing Jointly ($45,120 for individuals). For someone age 69 I would expect that this is indeed a noormal distribiution. Anything above that amount is taxed at a flat rate of 4.35% just like normal income. If this is not a normal distribution, then you don't get the exclusion. More info here: Taxes - Pension & Retirement Benefits
    fishinjack's Avatar
    fishinjack Posts: 2, Reputation: 1
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    #3

    Apr 4, 2011, 01:32 PM
    Comment on ebaines's post
    Thanks. Very helpful.
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