2007-02-23 05:07:06 · 7 answers · asked by bozoto 1 in Business & Finance ➔ Personal Finance
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2007-02-23 05:20:27 · answer #1 · answered by Sumitha 3 · 0⤊ 1⤋
unless the money is in a Roth you can't avoid taxation. It's income, no different than wages and tips. Only thing you can do is continue to defer the income by not taking it or only taking what you need or are required to take by minimum distribution rules. If your 401k does not allow for installments then roll it into an IRA. You can take installment payments or even annual withdrawals from there.
2007-02-23 05:19:36 · answer #2 · answered by digdowndeepnseattle 6 · 0⤊ 0⤋
If you take money out of your 401K, ( which is ALWAYS a mistake!) you are required by law to pay a tax penalty on it.
You are better off borrowing against it than straight up withdrawing money from it.
2007-02-23 05:19:43 · answer #3 · answered by Louis G 6 · 0⤊ 0⤋
If you take money out of your 401k, it will be taxed. Unless your income is so low that you are still in the -0-% tax bracket. No way around it, legally.
2007-02-23 05:17:04 · answer #4 · answered by AllTheGoodNamesAreAlreadyGone 3 · 0⤊ 0⤋
I think you can pay the taxes on the money in there NOW & roll it to a ROTH IRA (subject to some limitations). Unpack this w/ a CPA to make sure you do it correctly or you will get hammered by the IRS.
2007-02-23 05:18:49 · answer #5 · answered by Tom's Mom 4 · 0⤊ 0⤋
Does not happen & you should not expect it to. You put in pre-tax money so of course there will be taxes on the way out. Hardly a problem.
2007-02-23 06:14:05 · answer #6 · answered by vegas_iwish 5 · 0⤊ 0⤋
That's impossible. When you remove it is when you pay taxes. A 401k is a tax-DEFERRED account, not a tax free account.
2007-02-23 05:15:55 · answer #7 · answered by Irish 7 · 0⤊ 0⤋