AboutIvan Roth Expertise Federal and State Income taxes I do tax returns for partnerships and C corporations I am well versed with State Franchise taxes for CA, CT, FL,NY,TN,TX.
Experience Eight years as tax manger for a real estate company
Expert: Ivan Roth Date: 7/6/2008 Subject: 401K payout
Question I was laid off from a job last July, I am 56yrs old, will be 57 this Sept. I had only been with this company two yrs, so I only had a little over $9k in the 401k Plan, I just requested that they send it all to me a couple of weeks ago. and they did, they withheld 20% federal tax and 5% state, I live in Oklahoma. Do I need to put back 10% for early withdraw? Or will I not have to pay that, since i was over 55 when I was laid off???
Answer Gary If you can hold off until you are 59and 1/2 there will be no penalty (you have 59 days to roll over the money from the date you took it out) of course the income tax is due either now or latter depending on what you decide
remember if you include the withholdings on your income tax forms you will receive credit even on a rollover if done properly.
