Welcome! | Ask A Question
Asked 8/8/2007
|
Do I pay FICA taxes on 401k/Retirement account income? What percentage? |
Answer 1/3 - Submitted 8/8/2007
No, however you do pay FICA on the funds going into the 401(k) even though you don't pay income tax on them.
FICA is only levied on earned income, never on unearned income.
Answer 2/3 - Submitted 8/8/2007
Not when you take it out. You already paid the FICA on what you put in when you put it in, and the appreciation of the 401K isn't taxed for FICA.
You will pay income taxes, though, on the money you withdraw from your 401K, if your total income is high enough to owe income tax.
Answer 3/3 - Submitted 8/8/2007
When you are contributing to your 401k, the first $97,500 of your wages are taxed at 7.65% for Social Security. Contributions to your retirement account are included. In addition, all your contributions are taxed 1.45% for Medicare.
When you take a distribution from your 401k, you do not pay SS or Medicare again. However, your 401k distribution can cause your SS benefits to be taxed.
Related Questions (Ask a New Question)
I put a step chld and my only child 50% each of 401 k beneficiaries when i retired. then made a will leaving everything to my only son. will the 401 k still go to both of them? if i want to change the 401k beneficiaries can i clip an addition to my will that changes the two on my 401k. or...
I inherited a 401 from my sister when she passed away. she would be 591/2 this march and would have been able to draw off her 401 in 2010. will i be able to draw off of this 401 in 2010 when she was able to draw or will i have to wait until i turn 591/2 which will be in2012?
401 k works for people who has income tax number or just with ssn?
|
I put a step chld and my only child 50% each of 401 k beneficiaries when i retired. then... |
|
I inherited a 401 from my sister when she passed away. she would be 591/2 this march and would... |
|
401 k works for people who has income tax number or just with ssn? |
|
Hello, my 401 portf.was diversified before sept. 2008 and i was getting between 8-12% return.... |
|
Can i cancel my 401(k) and cash it out while still working for my employer? Due to the current economic situation i need to get some funds from my 401(k) but do not qualify... |
|
I only have 5,000 in company 401k. i started new job this week, shoud i roll it over (new... |
Ask A Question
Ask a new question about
401k:
About
| Contact Us
| Membership Agreement
| Privacy Policy
| Site Map
| Advertise on this Site
Copyright © 401kQuestions.net 2010. All rights reserved.
Powered by Yahoo! Answers