I have income of $10000 this year, What is the max I can withdraw from my 401K account so as not to incur tax?

Answer 1

You would have to take a theoretical amount and do a tax return to answer that question.

It could be possible to pay zero tax as long as you had adjustments to income, such as moving expenses, or credits to offset it, such as the Education Credits. If you have no such credits or adjustments, then all of your withdrawal is going to be taxed and there is no minimum you could take out without paying income tax.

The 10% penalty that you would be paying unless you are age 59.5 or satisfy one of the exceptions would have to be paid and cannot be offset with credits. It could be offset with other payments like excess Social Security, but you would then forfeit that payment so in fact would be paying the penalty.

Answer 2

If you're over 65 and filing a joint return, you can probably take out around $9000 without incurring tax on the withdrawal since your income would still be below the limit where you'd owe any income tax.

But if you're single, then anything withdrawn would incur tax.

If you're under 59-1/2, you'd pay a 10% penalty on what's withdrawn, in addition to any income tax due.

So can't really give you an answer, since you don't give enough info.

Answer 3

Uh $0. Well unless you have a Roth IRA then you can withdraw it all without penalty. Or you could just take a loan out which is usually half of what you have in there up to $50,000. Usually you have to pay this back with an interest around 9.5%.

Try to stay away from withdrawing it though. Its your future your playing with.

Answer 4

If you are not of retireement age, all 401k deductions (of non-taxed comtributions) are taxable, with an additional 10% penalty for early withdrawal.