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Asked 4/19/2010

Taxes on 401K

Say i have 42000 in my 401K and want to pull it out cuz i am being laid off due to the Nafta agreement what are the taxes going to be or what should i set aside to make sure when i do my taxes i don't mess up.

 
 
 
 
 
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Answer 1/1 - Submitted 4/19/2010

To avoid the penalties, you really should wait until you have a hardship the IRS will recognize to avoid the 10% penalty, or at least only retain the portion you'll absolutely need this tax year and rollover the rest.

The total tax will depend on many variables: Other taxable income, marital status, dependents, allowable deductions and credits...

 
 
 
 
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