Do I need to pay taxes on the interest gained in the 401K account, considering that I'll withdraw dollars in there after the age of 60?
2006-08-03 12:32:42 · 3 answers · asked by webdev 1 in Business & Finance ➔ Personal Finance
Yes, you'll need to pay taxes on your 401 interest -- but not until you withdraw it -- presumably you'll be in a more "favorable" tax position after retirement, when you begin drawing on your 401K.
2006-08-03 12:38:22 · answer #1 · answered by me 7 · 0⤊ 0⤋
401k is tax-deferred program to help workers saving for retirement.
everything you put in there is all tax defer.
IRS rules that at the of 59 and 1/2. money withdraw from that account will be tax as ordinary income
2006-08-03 13:51:15 · answer #2 · answered by Hoa N 6 · 0⤊ 0⤋
Taxes are paid when one withdraws money from the 401K account.
For more information, a quick search on the irs.gov website will give you accurate, current information.
2006-08-03 12:37:49 · answer #3 · answered by kearneyconsulting 6 · 0⤊ 0⤋