how can i keep from paying income taxes on my 401k when i withdraw it ?

Answer 1

you can't - you didn't pay taxes when you put it in, so you have to pay when you take it out. The only way is to roll it over into another tax-deferred plan. in other words, if you want the money, you'll have to pay uncle sam

Answer 2

You cannot avoid taxes on the distributions you take from a 401k unless it is a ROTH 401K (which it probably isn't because ROTH 401K plans were not available until January 2006). Hopefully you have other tax free retirement income in the form of ROTH IRAs. Note: I am assuming that you are of retirement age and are not prematurely tapping into your 401K otherwise you will pay an early withdrawal penalty and be taxed on the money (double whammy!)

Answer 3

If you wait until you retire you will not have to pay a penalty and your tax rate will be lower.

If you really don't want to pay taxes on the money simply die before withdrawing any money from your 401K you will not have to pay income tax on it. Your next of kin might have to pay inheritance tax depending on the laws at the time.

Answer 4

The only real way (if I understand your question) would be to have taxable income less than or equal to the amount of your deductions on your 1040. For example, if you have no other income but $5,000 in 401(k) withdrawals...then you will not pay taxes b/c your standard deduction will offset the income.

Answer 5

Don't touch the money. Let your employer roll it over into an IRA. That's the only way a distribution from a 401(k) is tax free (unless you die and pass it to your spouse). If you need some money from it, check with your employer to see if you're eligible for a loan on your vested balance.

Answer 6

You can opt to pay them at the end of the year but u still have to pay them. its jus a matter as to when