And how much money you get back with your 401 K retirement plan?
2006-10-29 21:01:37 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
I am assuming that your deductions for money put into the 401K is pretax, so you got the benefit of paying no taxes on it with each paycheck (typically no more benefit when you file).
However, you might qualify for a credit come tax time that is for people who put money into a retirement plan & they meet certain criteria (based on your income & age). It's meant to encourage people entering the workfroce to put money into a retirement plan. Check out:
http://www.irs.gov/pub/irs-pdf/f8880.pdf
Otherwise, don't do anything with your 401K until you take money out of it (hopefully won't be until you retire, otherwise there are penalties).
2006-10-30 01:44:37 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It is not clear if you are an employer or employee.
If you are an employer funding a 401k plan you will have to submit annual information returns to the IRS. The plan administrator or your accountant can do those for you.
If you are an employee, any payments you make are deducted before your employer calculates your withholding. So, if your tax rate is 15%, every $100 you put in only costs you $85. The only time making contributions should be reported on your tax return is if your income is low enough to claim Saver's Credit. Go to irs.gov and search for Pub 590.
When you retire, payments from your 401k will be subject to tax. However, you may not actually pay any tax. that will depend on your other income at that time.
2006-10-29 23:15:48 · answer #2 · answered by skip 6 · 0⤊ 0⤋
In the event of an inherited account where you don't have an SSN, ask the custodian to issue you a letter showing that you have an asset that needs to be reported to the IRS. Use this letter to request an ITIN with form W-7. Check H and exception #1.
2016-05-22 07:02:00 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If you are over 59 1/2, then the income you take from it will be ordinary income. If you are under that age, it is still ordinary income but is subject to a surcharge penalty. If you are not taking money out, then all of the "income" the fund is earning is not taxable.
2006-10-29 23:12:45 · answer #4 · answered by extra_37 4 · 1⤊ 0⤋
I was sick and stop working. Because I stop Working they send me the rest of my 401k money that was left, but I got penalties so they give me the rest. So I had early retirement money. they took out federal from what they give me, can I file Taxes on the federal that they took out?
2015-05-04 04:31:47 · answer #5 · answered by Alicia 1 · 0⤊ 0⤋
Only when you cash out.
2006-10-29 21:02:38 · answer #6 · answered by ElOsoBravo 6 · 0⤊ 0⤋