How much in taxes will i have to pay for a distribution of $17000.00 from my 401k plan?

Question

How much in taxes will i have to pay for a distribution of $17000.00 from my 401k plan?

Answer 1

Regular income tax on the $17K at whatever your tax rate is, plus $1700, or 10%, penalty if you are under age 59-1/2.

Answer 2

Federal and state income tax at whatever tax rate you would be in. A 10% federal early withdrawal penalty if you are under 59 and one-half.

Answer 3

it depends on your tax bracket.

depending on other factors you may also have to pay a 10% penalty.

and maybe have about 20% withheld for irs income tax.

your state may want s a piece of the pie too....

Answer 4

Best case:

You have no other income

You are not subject to the 10% penalty

You file single with no dependents (or any other filing status)

Your tax would be at most $700.

Much worse case:

You are already in the 25% tax bracket without the withdrawal

You are subject to the 10% penalty for early withdrawal

Your tax would be about $5,950.

So as you can see there is a great variation depending on your circumstances.  It wouldn't hurt to go to a tax preparer before you take the distribution to find out what the tax bill will be.