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The federal taxes were paid at the time of my distribution.

2007-02-04 15:39:40 · 4 answers · asked by waterbaby 1 in Business & Finance Taxes United States

4 answers

If you were 59 1/2, there is no penalty.

However, you may NOT have paid all of the tax yet! Distributions are subject to withholding but it's possible that not enough was withheld to cover your total tax liability. You must still list the distributon on your return (along with your other income) and calculate the tax due. You'll get a credit for whatever was withheld, same as on W2 wages. If there's a tax due, you'll have to pay it. If a refund is due, you'll get it. Same as any other tax year, really.

2007-02-04 15:46:29 · answer #1 · answered by Bostonian In MO 7 · 1 0

the quantity of tax that you will pay on a distribution of $5K is not person-friendly to make certain without understanding what your earnings element and age. a straightforward wager may be to take your very last years go back and seem for the marginal tax fee(the utmost fee paid on the perfect dollar you earned). That fee, cases the $5K, plus 10% of the $5K if you're no longer fifty 9 a million/2 years previous on the time of the distribution provides you with some theory what the tax will be. you may pick to make an adjustment in case you earnings will be a great deal different this year. in case you state has earnings tax also have an tax and penality to pay there also. that is under no circumstances rare for human beings to pay as a lot as 40 5% in tax on early distributions so that you'll pick to seem at another technique of managing this difficulty little while period. in case you ingredient interior the interest you're making on the money in case you go away it interior the 401k a little while period loan will seem enormously sturdy.

2016-11-25 02:44:20 · answer #2 · answered by Anonymous · 0 0

As long as the policy states 591/2 your okay but you will receive a form from the distributing co and you will have to file it with the IRS the IRS already knows that you received this money and if you are disabled there is a way to get the around the taxes

2007-02-04 19:02:15 · answer #3 · answered by Cheech 1 · 0 1

You will not be subject to the 10% penalty but only 20% of the withholding was taken. If your tax rate is higher than 20% then you will owe additional tax.

2007-02-05 07:07:49 · answer #4 · answered by digdowndeepnseattle 6 · 0 0

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