$31,000 in my 401k,how much tax do I pay during distribution?

Answer 1

10% penalty for early wothdrawal. then 20% for taxes. The 20% would be filed with your other income tax , and you could get a portion of it back .

Answer 2

The distribution is taxed as ordinary income so the final tax bill will depend upon your other income. If you are under age 59 1/2 there is also a 10% penalty tax on top of the regular taxes unless you qualify for one of the exceptions such as to pay unreimbursed medical expenses that exceed 7.5% of your AGI or if you become totally and permanently disabled. (You cannot use funds from a 401(k) for the first-time purchase of a home without penalty as one resondent indicated. That is limited to IRAs only.)

When the distribution is paid out to you, 20% will be withheld for Federal income taxes. If your state requires mandatory withholding of tax, add that to the amount that will be withheld. Keep in mind that for most taxpayers the amount withheld will NOT be enough to cover your tax liability! For example if you're in the 28% tax bracket you'll be about $2,480 short at filing time and could face additional penalties for underpayment of taxes.

Answer 3

you'll pay 20% of it at the time of the distribution (unless you're a foreign national then it's 30%). Come tax time when you complete your tax filing you'll also be hit with a 10% penalty. Whether you owe additional funds is up to your personal tax situation. It's dependent upon your income level, your exemptions, your deductions, and how much of your regular paychecks you had withheld. Same goes for state but typically state withholding is voluntary.

Answer 4

Withdrawals before the age of 59½ is "Early withdrawal." “Early Withdrawal is subject to 10% penalty.

Also the withdrawal will be taxed at your normal income tax rate. However, in some case there is no penalty on early withdrawals.
*If distributions are not more than your qualified higher education expenses
*You have unreimbursed medical expenses that are more than 7.5% of your adjusted gross income. The distributions are not more than the cost of your medical insurance.
*You are disabled.
*The distributions are not more than your qualified higher education expenses.
*You use the distributions to buy, build, or rebuild a first home.
*The distribution is due to an IRS levy of the qualified plan. *The distribution is a qualified reservist distribution.

Answer 5

You'll pay income tax as ordinary income at whatever your rate is. In addition, if you take it out before you are 59-1/2, you'll pay a penalty of 10% of the amount withdrawn.

Answer 6

you can opt to not tax it ..but if you do..they will tax about 20% of it..

Answer 7

when you take it out..ordinary income on the part yoy did not put in..............