[CStoddard80]

My husband and I made about $98,000 last year from our employers. I expect that number to stay fairly close this year (maybe up to $103,000). I have also become a pampered chef consultant and forsee my "income" from this to be roughly $3000. Last but no least I took an early distribution from my 401K of $7000 I had 35% held in taxes from this. I am wondering if this will be enough to cover the withdrawal taxes and taxes I will be responsible for from the pampered chef income.(oh and no, we did not take the money out to stop foreclosure, college or any tax exempt reason!)

[ScottGem]

Its hard to tell, because there may also be state taxes. There is also a 10% penalty that will need to be paid.

[AtlantaTaxExpert]

I venture to guess that the 35% is merely a down payment of the taxes owed.

At a minimum, with the 10% penalty and state income taxes factored in, you can expect to pay AT LEAST a 33% tax bill. It CAN get as high as 50% in some high tax states like New York or Massachusetts.