2007-03-11 09:54:29 · 5 answers · asked by pg h 1 in Business & Finance ➔ Taxes ➔ United States
Only on the portion attributable to interest. Lets assume that the interest rate is about 6.5%. So the first year, you might have to pay taxes on about $450 or so. Well 2.5 months of the year are already over so it will be only about $350 or so.
2007-03-11 10:07:36 · answer #1 · answered by Anonymous · 0⤊ 4⤋
If you withdrew this money from an after tax account, then no tax is owed.
If you withdrew this money from a retirement account on which you had deferred taxes, since you are over age 59.5, you will not owe the 10% penalty. But to the extent that your withdrawal was taken from a tax deferred account, you will owe income taxes on the withdrawal.
Go to a tax preparer that you feel confident in. They can review your situation and advise you of what, if any, taxes are due on this withdrawal.
2007-03-11 10:03:41 · answer #2 · answered by ninasgramma 7 · 0⤊ 1⤋
If you withdrew the money from an IRA, Roth IRA, 401k, or if it's a 1035 exchange; you do not have to pay taxes on the moneys. These are qualified funds.
Anywhere else you get the money from, it is non-qualified and taxable.
2007-03-15 06:25:47 · answer #3 · answered by xcypher73x 4 · 0⤊ 0⤋
Get free rates
2015-02-10 08:55:42 · answer #4 · answered by Leonora 1 · 0⤊ 0⤋
That depends upon what you withdrew the money from.
2007-03-11 10:00:46 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 1⤋