AboutDavid M Iannopollo Expertise I am a professional financial advisor who can assist you with answers on mutual funds, annuities, IRA's, rollovers, qualified and non-qualified retirement plans, retirement planning, educational planning, life, disability and LTC insurances.
Experience I have over 20 years experience in the business and financial world.
Im very short on cash, and im in between jobs. my truck is about to kick the bucket. i need to know how i can cash out my entire Arizona retirement account. it isnt much, but enough to put me in a newer car. can you tell me how i go about getting that money, and what taxes will apply? thanks,
kenny
Answer Hi Kenny,
You'll need to call the company holding your account and have them issue you a check. They will withhold 20% for federal income tax. You will owe more or less federal tax when you file depending upon your tax bracket. So, for example, your tax bracket is 25%, you would owe an additional 5% at tax time. If your tax bracket is lower than 20%, you will get a refund. If you are under age 59 1/2, you will also face an early withdrawal penalty of 10%. In addition to the fed tax and penalty, you will also have to pay Arizona state tax.
