How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Merlo Your Own Question
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
9573734
Type Your Tax Question Here...
Merlo is online now
A new question is answered every 9 seconds
Tax

If I cash out my 401K worth $37,000. What will I need to pay

If I cash out my... Show More
If I cash out my 401K worth $37,000. What will I need to pay in penalties and taxes?
Submitted: 6 years ago.
Category: Tax
Show Less
Ask Your Own Tax Question
replied 6 years ago.

Hello JA Customer,

 

The 10% withholding is required by the IRS, but the actual amount you will owe really depends on your filing status (single or married) and your entire income for the year, including this withdrawal, as that will be what determines the actual tax bracket you are in.

 

If you are a single taxpayer and your total income for the year, including this withdrawal, will be $43,000 or less, then you will owe federal taxes of around 15%. If your income will be above this amount, your tax liability will be around 20%. If you are under the age of 59-1/2 at the time you make this withdrawal, you will owe an additional 10% to cover the early withdrawal penalty.

 

If Hawaii is your resident state, you will also owe HI state taxes ranging between 7.5% to 8%.

 

If this was helpful please press the Accept button.

 

Thank you JA Customer

 

 

Related Tax Questions