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Accounting, Payroll & Pension Issues/Withdrawal from 401(k)
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Question
I'm retired (age 66) and am contemplating purchasing a mobile home to be my permanent residence and want to pay cash for it. If I withdraw the funds from my 401(k), what are the tax ramifications? Thank you.
When you withdraw money from the 401k it is taxable income and you pay federal income tax on the amount you receive. If your state has a state income tax, you also pay state income tax. The amount you receive is taxed the same way additional salary is taxed.
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Accounting, Payroll & Pension Issues
Answers by Expert:
Allen
Expertise
Pension questions ONLY. Pension, profit sharing, and 401(k) plan design, installation, administration and actuarial services; rollovers to Individual Retirement Accounts; taxation of retirement plan distributions
Experience
Over 35years experience in the pension field
Organizations
Various actuarial organizations
Education/Credentials
MBA and various professional certifications
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