Question:

Will I owe money next year during taxes?

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Will I owe money next year during taxes if I take all of my money from my 401k?

This is kind of the 2nd part to this question: http://answers.yahoo.com/question/index;_ylt=Akn7QQHL43vcr3w7T.VaPXXsy6IX;_ylv=3?qid=20080813192507AAJABq3

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  1. If the $1500 is your only income for the year (but how are you living then?)  you wouldn't owe any income tax on the withdrawal - if you have other income then you might owe income tax.  In any case, if you are under age 59-1/2, you'll owe a 10 percent penalty, $150, on the withdrawal.  

    If enough is withheld from the distribution, then you wouldn't owe more when you file.


  2. Usually the answer is yes.  They only withhold 10% for income tax.  If you were already in the 15% tax bracket and then took the entire balance of your 401K, the very first $1 is taxed at 15% and you would be short.  If you take a lot of money, it can push you into the even higher tax brackets.  

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