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    hartbarn1's Avatar
    hartbarn1 Posts: 1, Reputation: 1
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    #1

    Sep 3, 2012, 08:52 AM
    I would like to take a large amount of money out of my 401k,I am 62 years old.
    I would like to withdraw money from my 401k.I am 62 years old.how will I be taxed on my withdrawal
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Sep 4, 2012, 07:53 AM
    The amount of the withdrawal is treated as ordinary income for tax purposes. The admin will most likely withhold 20% for federal taxes - whether this is adequate depends on your tax bracket, which in turn deepnds on factors such as your total adjusted gross income, filing status, exemptions, and deductions. You may also owe state/local income tax, depending on where you live. The good news is that you will not owe any early withdrawalo penalty.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Sep 6, 2012, 06:33 AM
    ebaines, as usual, has covered the topic thoroughly, so I have nothing to add.
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