If I took some money out of my pension fund?

Question

...say $40k, what % of that would I need to set aside for taxes?

Answer 1

Depends on couple of things. What's your tax bracket for 1. Are you under 59 1/2? (extra 10% penalty if you are and don't meet certain exclusions). Did you roll it into something within time period? Too many uncertainties to give you correct answer.

Answer 2

It depends on your total income, and how old you are. The amount you took out will be taxed as ordinary income at whatever your tax rate is. If you are under 59-1/2, you'll pay an additional 10% as a penalty for early withdrawal - on $40K, the penalty would be $4000.

Answer 3

If you take a distribution from a pension fund before age 59.5, you are going to pay a 10% penalty. In addition, you are going to pay income tax.

Figure 25% plus 10% penalty for federal taxes. So $14,000 should be set aside for federal taxes. You may also owe state taxes, figure $2,000 for those.

Answer 4

It depends on what state you live in. In my state it could be 50 to 55% with both Federal and State tax and penalities if you are under 59 1/2.

Answer 5

20% for taxes, and 10% for penalty, unless it was a loan. Your accountant, tax preparer or HR department can give you a more personal answer.