Welcome! | Ask A Question

 
 
 
 
Question

Asked 4/20/2008

401K withdrawal at age 62

Do I have to pay an early withdrawal penalty if I withdraw funds from my 401K at age 62

 
 
 
 
 
Answers

Answer 1/17 - Submitted 12/2/2008

No if you are over 59 1/2. but you still have to claim it as income and get taxes on it both federal and state depending on the state you live in

 
 

Answer 2/17 - Submitted 2/19/2009

How much tax would I have to pay if I with draw $100,000 to pay off my mortgage age 62.

 
 

Answer 3/17 - Submitted 3/24/2009

The tax on $100,000 from a 401(k) is 20%--- that's what they have to withhold...
$20,000----If you move to IRA and withdraw, they do not have to withhold at the time of distribution, but you will have to report the withdrawal on you income taxes..... and the percentage would vary based on the income.....

 
 

Answer 4/17 - Submitted 9/25/2010

Can a company limit you to one withdrawal a year if you are 62?

 
 

Answer 5/17 - Submitted 9/26/2010

How much taxes do i pay the irs retiring at age 65

 
 

Answer 6/17 - Submitted 8/15/2011

401K withdrawal at 62 years what are the taxes paid

 
 

Answer 7/17 - Submitted 8/15/2011

Fortunately, there are no additional tax penalties when withdrawing funds at age 62. You need to be 59 and 1/2 or older to make 401(k) withdrawals without extra difficulties. Otherwise, an additional 10% penalty is normally imposed by the IRS.

At retirement age, withdrawals should be taken. They are actually mandatory after reaching age 70, so 62 seems like a perfect age to start drawing out of the account. Of course, disbursements are subject to some taxes.

Your 401(k) withdrawals count as income. This means they will be subject to regular Federal income taxes, as well as state taxes, if applicable. Always try to plan your tax strategy wisely. Income from other investments or Social Security will bump up your gross adjusted income, not counting what you withdraw from the 401(k). With a safe withdrawal rate that still gives you a comfortable retirement, you can continue to build wealth with your 401(k), while minimizing potential tax liability.

 
 

Answer 8/17 - Submitted 8/15/2011

So at 62 years old all withdrawls are charge at 10%. Correct? not 20%

 
 

Answer 9/17 - Submitted 8/16/2011

The withholding tax will either be specified by the plan, or they will ask you what you prefer. How much tax you actually owe will depend on the rest of the information on your tax return.

Most people find 10% federal tax withholding to be a bit too low, and end up paying the balance when they file their tax returns. If you are drawing Social Security, or have other income this year, then you should ask them to withhold 20%. Any excess withholding will become part of your tax refund next spring.

 
 

Answer 10/17 - Submitted 5/5/2012

I am 62 years of age and my 401K is valued at 31,400. The fund indicates That I may take out only 24,000.00. Why can't I withdraw 100% the 31,400?

 
 

Answer 11/17 - Submitted 5/5/2012

I am 62 years of age and my 401K is valued at 31,400. The fund indicates That I may take out only 24,000.00. Why can't I withdraw 100% of the 31,400?

 
 

Answer 12/17 - Submitted 7/10/2012

I am 62 years old I want to withdraw my 401K ( $37,000) approx ..do I ask them to take out 10% for fed and state?..By the way I am unemployed but my unemployment money isnt enoughto sustain me until I find work...

 
 

Answer 13/17 - Submitted 11/5/2013

My husband and I are both 62. We both have IRA and I also have a 403b and and Roth account. My husband who has technically been disabled for years but has been blessed to be able to continue working as a Sales Manager, has recently developed back issues due to the loss of his right leg in 91 and wearing a prosthesis all these years. The doctors have even told us this is most likely what has caused his back issues. He eventually is going to have to have back surgery within the year or less and we have no idea what this will result in. We presently live in a split foyer home but have been looking at one level homes to consider buying so that we will have no steps to contend with. My question is can we take the money out of his 401k plan to purchase a home should we find one and then upon selling our existing home but the money back into it for our retirement?

 
 

Answer 14/17 - Submitted 8/19/2014

Can i take 3500 from my 401 k i am 62 1/2 years old company great west

 
 

Answer 15/17 - Submitted 8/20/2014

Betrothed813 -
If you are still employed by the company, you probably cannot get a distribution from your 401k. You might be able to get a loan from the account.

If you are no longer employed by the company, you can contact the 401k trustee to ask inquire about a distribution. Hopefully this isn't an emergency, as it often takes over a month to get a distribution from a 401k plan. It would be subject to income tax.

 
 

Answer 16/17 - Submitted 8/30/2014

If I invest my 401K into a new home am I still subject to pay taxes at age 63?

 
 

Answer 17/17 - Submitted 8/30/2014

Lillylillybl
Your 401k distribution is subject to income tax, no matter how you choose to use it.

You are not subject to an early distribution penalty, because you are over age 59 1/2.

 
 
 
 
Answer This Question Now

Type your Answer in the box below and post your answer.

Learn more about how this works

 
 

Withdrawing From 401K Related Topics

401k Rollover  |  401k Plans  |  401k Plan  |  401k Information  |  401k Com  |  401k Retirement  |  401 K
Individual 401k  |  401k Advice  |  401k Investment  |  401k Loan  |  401k Distribution  |  401k Company
Self Employed 401k  |  401k Loans
 

Related Questions (Ask a New Question)

 
Will i have to pay taxes on money paid to me after my divorce

I recently got divorced and part of the agreement was i was to recieve money for my 1/2 of equity in a home me and my now ex husband were buying.he kept hte home and i had ot relocate will i have to pay taxes on the money i recieved.i will also get 1/2 of his 401k as he will mine it is to be set up...

See Answers

 
No income, but deductions

I was out of work for the entire year of 2007. i did not collect any unemployment. even though i have no income to report, i do have deductions and i have in the past itemized deductions. how do i file and claim deductions since i have no income to report? should i withdraw from my 401k in order...

See Answers

 
Additional income

I need to know if accept a payment from my after tax contributions out of my 401k, if it will cause me to pay taxes? the amount is $14,200 approx. how do i figure that out?

See Answers

 
Related Questions

Will i have to pay taxes on money paid to me after my divorce


I recently got divorced and part of the agreement was i was to recieve money for my 1/2 of...

 

No income, but deductions


I was out of work for the entire year of 2007. i did not collect any unemployment. even...

 

Additional income


I need to know if accept a payment from my after tax contributions out of my 401k, if it will...

 

401k withdrawal


Can you withdraw funds from a 401k at any time due to a terminal illness?

 

401k reduction of wages


Question: in the past the 401k contribution reduced all taxable wages dollar for dollar...

 

Taxes and penalties on 401k early withdrawal for new home


If i withdraw my 401k to purchase a house would i still be subjected to the 10% penalty and...

 
 

See more 401k questions

 
 
 
 
 

Ask A Question

Ask a new question about
401k: