Large 401k withdrawal after 60 is there any prepayment of taxes needed or required or pay april 15?

Question

Large 401k withdrawal after 60 is there any prepayment of taxes needed or required or pay april 15?

Answer 1

You will owe regular income tax on the withdrawal, at whatever your tax rate is.  If you just wait to pay the tax until 4/15, you'll be charged penalties for underwithholding.  Either have tax withheld from the distribution, or make a quarterly estimated payment, to avoid the penalties.

Answer 2

Taxes are always due when the income is received. If you wait until April 15 you may have to pay penalties.

You should have them withhold something from the distribution or make an estimated payment based on your total income.

Answer 3

Any 401(k) withdrawal after 60 is treated the same as any other ordinary income when it is received.  Plan accordingly.

Answer 4

If you're over 60, it is just taxable income for the year you withdrew it.  If you just did it in 2008, you'll report the withdrawal on your tax return filed next April 15.

Answer 5

Here's the rules:

http://www.bankrate.com/yho/news/advice/...