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

    Jan 30, 2016, 08:27 AM
    My 401 is 1600.00 I don't work anymore. I want to cash it in.
    I have a 1600.00 401K where I worke for 2 years. I am 69 yrs. Old. I no longer work there. I would like to cash in the 401K. What taxes would come out?
    Dchdman's Avatar
    Dchdman Posts: 226, Reputation: 17
    Full Member
    		  
    #2

    Jan 30, 2016, 08:53 AM
    Hello

    From what I understand of a 401K talking to my Uncle who is in the USA the tax-deferred until withdrawn after retirement would be the same amount ( the net taxes paid should be the same ).
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #3

    Jan 30, 2016, 02:59 PM
    Since you are over 59 there would be no penalty for withdrawal. The plan administrator would withhold 20% for federal taxes. You would then get a 1099 at the end of the year to use to report the distribution. The amount would be added to your taxable income for the year to determine your tax liability. The amount withheld would be used to determine how much you owe or get as a refund.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jan 30, 2016, 10:19 PM
    While what Scott says is true in general, the amount withdrawn is so low that you can request NO withholding at all if you can show that no income tax would be due.
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