how much taxes are taken out %age wise when you are getting money back in bulk from pension?
2007-02-01 09:20:41 · 3 answers · asked by Lisa 5 in Business & Finance ➔ Taxes ➔ United States
I believe 20%.
2007-02-01 09:27:20 · answer #1 · answered by Anonymous · 2⤊ 0⤋
I really think you could do whatever your need are using TurboTax. But then i just did this last night so.... here's my stab at it.
We recieved a Payout from a Municipal Retirement thing (similar to pension) The taxes were 10% because we took it out before it had spent 5 years "in the oven" and bcause we did NOT use it for medical expenses or the like.
Alot of this depends though on your State and from which company the pension was held. It could be as High as 25 but those are the two numbers I know..
10% for early cashout
25% for other reasons.
Again I uger TurboTax Deluxe on you.
It did this for us automatically. And filing Electronically was on 14.95 plus tax... and i will recieve my refund in about 9 days... from yesterday.
2007-02-01 17:31:39 · answer #2 · answered by Anonymous · 0⤊ 2⤋
It doesn't really matter how much is taken out. They are probably withholding statutory rates. The important is how much you have to pay at the end of the day. Assuming that the pension withdrawal is not an early withdrawal, then the pension amount is taxed based on your marginal tax rate. If it is an early withdrawal, then it is also taxed an additional 10% for an early withdrawal.....assuming that your pension plan even allows for an early withdrawal.
2007-02-01 17:26:41 · answer #3 · answered by jseah114 6 · 0⤊ 2⤋